What the New Memory Crisis Means for RAM and SSD Prices
The current memory crisis is a sustained spike in DRAM and NAND prices driven by surging AI server demand, leaving less supply for PCs, pushing RAM and SSD prices to record highs, and raising PC building costs for both consumers and enterprises. In May, DRAMeXchange reported that average PC-use commodity DDR4 8Gb chips hit USD 20 (approx. RM92), up 25% from USD 16 (approx. RM74) in April, the highest level since tracking began in 2016. NAND flash used in memory cards and USB storage also reached USD 26.51 (approx. RM121), continuing a 17‑month climb. At the same time, Team Group warns that AI servers now consume 40–50% of total memory demand and expects shortages to extend until at least 2028. Together, these forces are driving a lasting RAM price increase and SSD price rise, not a brief spike.
How AI Servers Are Draining DRAM and NAND Supply
AI server deployments are the main engine behind the memory crisis. Team Group CEO Gerry Chen estimates AI-related workloads now account for around 40% to 50% of the entire memory market, spanning both DRAM for system RAM and NAND for SSD storage. Most production for 2026 and 2027 already has buyers, leaving PC OEMs and DIY builders to fight over the remaining output. According to TrendForce, PC DRAM contract prices rose 40% to 50% quarter-on-quarter in the second quarter after an earlier 100% to 115% surge, while commodity DDR4 prices hit new records in May. On the enterprise side, UBS notes that tight HBM and DRAM supply for AI GPUs has driven price jumps of up to 414% in some cases, and PC manufacturers have been paying about 110% more for memory to secure supply. This demand imbalance keeps DRAM prices record high.
Impact on PC Building Costs and Consumer Upgrades
For consumers, the memory crisis translates into higher PC building costs and tougher choices. DDR5 kits that were once bargain-priced are becoming noticeably more expensive, and SSD price rise trends mean even basic capacity upgrades cost more than a year ago. Team Group reports that manufacturers are struggling to keep enough consumer-grade RAM and SSD stock, as more wafers are reserved for AI and server products. TrendForce data shows that NAND prices have climbed about 280% since early last year, pushing them into a consolidation range but still at record levels. For budget PC builders, this affects everything from entry-level gaming rigs to home office machines, as RAM often jumps from a minor line item to a major share of the parts list. The result is fewer truly low-cost systems and more pressure to compromise on capacity or delay upgrades.
Servers, Dell, and the Enterprise Memory Squeeze
Enterprise buyers are feeling the memory crisis even more sharply. UBS highlights that PC and server vendors have faced 110% higher memory prices in early 2026, and increases of up to 414% in some memory segments aimed at AI workloads. Dell’s recent results underline the scale of the shift: AI server revenue jumped 757% year-on-year, making memory a central cost driver. UBS expects the impact of rising DRAM and NAND prices on Dell’s PC, server, and storage margins to become more severe in the second half of 2026 and into the first quarter of 2027, and does not expect a subsequent price decline to ease margins for a long time. As Dell COO Jeff Clarke put it, component price changes now reflect “an inflationary environment that is changing at a rate that obviously we have never seen before.”
What to Expect Next and How Buyers Can Respond
Looking ahead, the memory crisis is unlikely to end quickly. Team Group believes supply shortages for both DRAM and NAND could last until at least 2028, while TrendForce expects commodity DRAM prices to stabilise around May’s levels in the near term rather than fall. UBS forecasts that memory cost pressure will stay intense through late 2026 and early 2027, even if growth in prices slows after that. For PC builders, this means treating current RAM price increase and SSD price rise trends as the new normal when budgeting. Practical steps include prioritising capacity now if you must build, choosing platforms with more DIMM and M.2 slots for future expansion, and delaying non-essential upgrades until pricing shows a clear downtrend. Enterprises may need longer refresh cycles and stricter configuration standards to control memory exposure across fleets.