Technology
AI demand tightens memory supply and lifts GPU prices
Engadget reports that AI data center demand is absorbing memory output, and executives expect tight supply well beyond 2026.
The short version
- AI data centers are consuming memory faster than it is manufactured, according to Engadget's reporting.[Engadget]
- A JP Morgan report cited by Engadget projects DRAM prices will rise 400 percent from 2024 levels by the end of 2026.[Engadget]
- Nvidia's GeForce RTX 5090 retails for $4,920 above its $1,999 suggested launch price, per Tom's Hardware's chips tracker.[Engadget]
- Micron's CEO expects tighter supply in 2027 and 2028, and SK Hynix's chairman says adequate wafer supply needs four to five years.[Engadget]
Key facts
- AI data centers are consuming memory rapidly, which Engadget links to the GPU and memory supply problem.[Engadget]
- A JP Morgan report projects DRAM prices will have risen 400 percent from 2024 levels by the end of 2026.[Engadget]
- Nvidia's GeForce RTX 5090 retails for $4,920 above its $1,999 suggested launch price from January 2025, according to the Tom's Hardware chips tracker.[Engadget]
- Micron, Samsung Electronics, and SK Hynix account for roughly 90 percent of global DRAM production.[Engadget]
- Micron CEO Sanjay Mehrotra said supply is expected to be much tighter in calendar 2027 and 2028 than in 2026.[Engadget]
- SK Hynix chairman Chey Tae-won said building adequate wafer supply will take at least four to five years.[Engadget]
- Micron has reportedly sold 75 percent of its 2027 HBM output.[Engadget]
What remains uncertain
- The DRAM price rise and supply shortfall figures are forecasts from a JP Morgan report and company executives, not confirmed outcomes.[Engadget]
- Acer's CEO told DigiTimes that prices could plateau next year, citing a potential influx of cheap Chinese alternatives; this outlook is unconfirmed.[Engadget]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.