--- title: "Mem-ageddon: AI chip frenzy to wallop DRAM prices with 70% hike" type: "News" locale: "en" url: "https://longbridge.com/en/news/271667211.md" description: "Memory prices are expected to rise significantly as chipmakers focus on AI server production, with a potential 70% increase in prices this quarter. Samsung, SK Hynix, and Micron are reallocating resources to high-margin server DRAM and HBM chips, leading to a supply crunch for consumer devices. Analysts predict a 60% jump in server DRAM prices in Q1 2026, with overall memory prices already up 55-60% in a single quarter. This shift in demand is reshaping the memory market, with significant implications for hardware makers and consumers." datetime: "2026-01-06T14:45:46.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/271667211.md) - [en](https://longbridge.com/en/news/271667211.md) - [zh-HK](https://longbridge.com/zh-HK/news/271667211.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/271667211.md) | [繁體中文](https://longbridge.com/zh-HK/news/271667211.md) # Mem-ageddon: AI chip frenzy to wallop DRAM prices with 70% hike Memory prices are set to spike again as chipmakers prioritize AI server production over consumer devices, with analysts warning of a high double-digit jump in Q1 2026 alone as demand outpaces supply. Samsung Electronics and SK hynix are reportedly planning to raise server memory prices by up to 70 percent this quarter, according to Korea Economic Daily. Combined with 50 percent increases in 2025, this could nearly double prices by mid-2026. The two Korean giants, alongside US-based Micron, dominate global memory production. All three are reallocating advanced manufacturing capacity to high-margin server DRAM and HBM chips for AI infrastructure, squeezing supply for PCs and smartphones. Financial analysts have raised their earnings forecasts for the firms in response, as they look to benefit from the AI infrastructure boom that is driving up prices for everyone else. Taiwan-based market watcher TrendForce reports that conventional DRAM prices already jumped 55-60 percent in a single quarter. Yet despite the focus on server chips, supply of these components continues to be strained too, with supplier inventories falling and shipment growth reliant on wafer output increases, according to TrendForce. As a result, it forecasts that server DRAM prices will jump by more than 60 percent in the first quarter of 2026. Prior to Christmas, analyst IDC noted the "unprecedented" memory chip shortage and warned this would have knock-on effects for both hardware makers and end users that may persist well into 2027. - Microsoft CEO Satya Nadella becomes AI influencer, asks us all to move beyond slop - Tired of sky-high memory prices? Buckle up, we're in this for the long haul - Micron says memory shortages are here for the foreseeable future - Smartphones face a memory cost crunch – and buyers aren't in the mood - AI mania to swell datacenter capex to $1.6T by 2030 – if the bubble doesn't pop first "The memory market is at an inflexion point, with demand materially outpacing supply," IDC stated, claiming that while the memory industry has long been characterized by boom-and-bust cycles, this one is different. This crunch stems from AI's voracious appetite for memory - hyperscalers like Microsoft, Google, and Amazon are driving demand that's permanently reshaping silicon wafer allocation away from consumer products (phones and PCs). This restricts the supply of general-purpose memory modules and pushes up prices across the board. IDC expects DRAM and NAND supply growth to lag at just 16 and 17 percent respectively this year, well below historical norms. According to Reuters, shares in the big memory chip makers are rising in response, as investors rub their hands at the prospect of further price increases. Shares in Micron surged 240 percent last year, while Samsung more than doubled and SK Hynix's market cap nearly quadrupled. Samsung's calendar Q4 operating profit is forecast to be up 160 percent, with SK hynix and Micron also expected to double profits in their next earnings disclosures. Economists this week warned that AI infrastructure investment could fuel broader inflation as these price hikes ripple through the economy. Happy New Year everyone! ® ### Related Stocks - [Micron Technology, Inc. (MU.US)](https://longbridge.com/en/quote/MU.US.md) ## Related News & Research - [Micron Technology Prices Tender Offers for Senior Notes](https://longbridge.com/en/news/281251689.md) - [Micron Stock Cools Off — Is MU Now Too Cheap to Ignore?](https://longbridge.com/en/news/281075738.md) - [Citi Slashes Micron (MU) Stock’s Price Target – Here’s Why](https://longbridge.com/en/news/281159687.md) - [Trump Says Micron Is One of the 'Hottest' Stocks. Does That Make MU a Buy Here?](https://longbridge.com/en/news/281042229.md) - [Micron Revenue Smashes Expectations, but Wall Street Yawns](https://longbridge.com/en/news/281414796.md)