What the Memory Shortage Crisis Means for DRAM and NAND
The current memory shortage crisis is a sustained supply squeeze in DRAM and NAND flash where AI servers, data centers, and new computing workloads absorb a growing share of available chips, driving a sharp DRAM price increase, SSD price rising pressure, and persistent RAM cost trends that push PC building and upgrade costs significantly higher for mainstream consumers and enthusiasts. According to Team Group CEO Gerry Chen, AI-related demand now consumes around 40% to 50% of the entire memory market, covering both DRAM and NAND flash. With most memory production for 2026 and 2027 already reserved, consumer channels are left to compete over limited stock. This imbalance is turning what once felt like a temporary spike into a long-running memory shortage crisis, affecting everything from entry-level DDR5 kits to high-capacity SSDs used in gaming rigs and creative workstations.
Record-High DRAM Prices and Slowing Short-Term Momentum
Commodity DRAM prices have surged to record levels, highlighting how stretched supply has become. Market data from DRAMeXchange shows that the average price of PC-use commodity DDR4 8Gb products hit USD 20 (approx. RM92) in May, up 25% from USD 16 (approx. RM74) in April, marking the highest level since tracking began in June 2016. TrendForce notes that second-quarter contract prices for PC DRAM ended up 40% to 50% higher than the previous quarter, although that pace has eased from the earlier 100% to 115% leap. The firm expects June prices to stay similar to May, suggesting a brief consolidation rather than a reversal. For PC builders, this means current DRAM price increases are baked in, and even if month-to-month spikes slow, elevated baseline prices are likely to remain through upcoming build cycles.
NAND Flash and SSD Price Rising Trends
NAND flash, the core of SSDs, is following a similar upward path. DRAMeXchange data shows the average price of commodity NAND MLC 128Gb products, commonly used in memory cards and USB devices, climbing to USD 26.51 (approx. RM122) in May, a 9.73% month-over-month increase and another record high. This marks 17 consecutive months of rising prices, driven by tight supply and strong demand. TrendForce attributes the slower pace compared with April’s roughly 36% jump to cumulative increases of about 280% since the first quarter of last year, which has pushed prices into a short-term consolidation range. Demand is also strong for mature-process products like SLC NAND, supported by edge AI, communications networks, and smart manufacturing. Suppliers are keeping production capacity low and show no sign of restoring legacy lines, reinforcing the SSD price rising trend for consumers.
Why AI Servers Are Reshaping RAM Cost Trends
AI infrastructure is now the main engine behind DRAM and NAND demand. Team Group reports that AI-related applications already consume 40% to 50% of the memory market, and that most output planned for 2026 and 2027 is effectively pre-sold. As more fabs prioritize high-margin server and AI products, fewer wafers are left for mainstream desktop and laptop modules, amplifying the memory shortage crisis on the consumer side. Server hardware prices are reportedly rising by around 30% every quarter, and experts warn that consumer PC components could eventually reflect the same pattern. This shift means RAM cost trends are no longer driven mainly by gaming cycles or new CPU platforms, but by large language models, training clusters, and data center upgrades – segments that can afford higher prices and long-term supply contracts that ordinary PC builders cannot match.
How PC Builders Can Plan Around Higher Memory Costs
For PC builders, the takeaway is clear: plan for a persistent DRAM price increase and SSD price rising pattern rather than a quick return to past lows. Team Group expects the overall supply shortage to last until at least 2028, suggesting that elevated prices could be the new normal for several upgrade cycles. In the near term, this will raise the floor cost of new gaming and productivity systems, especially those requiring high-capacity DDR5 or fast NVMe SSDs. Builders should prioritize parts most affected by RAM cost trends and lock in capacity needs early, avoiding multiple small upgrades. Stretching existing kits, reusing drives where possible, and being flexible on speed or brand can soften the impact. While prices may stabilize month to month, the broader trajectory for memory and storage remains upward for the next few years.