The world is facing a memory chip crisis as artificial intelligence's insatiable appetite for computing power creates shortages that are expected to drive up prices for everything from smartphones to laptops in 2026.
The explosion in AI-related cloud computing and data centers has led to unprecedented demand for certain types of memory chips, creating a supply imbalance that industry experts warn will start affecting consumer product prices.
Idaho-based Micron Technology, one of the world's top makers of RAM, reported better-than-expected quarterly earnings last week on the back of higher memory chip prices. CEO Sanjay Mehrotra said the company expected the market to remain strong as the AI boom continues.
The shortage stems from AI systems requiring massive amounts of high-bandwidth memory (HBM) to process the enormous datasets used in training and running large language models and other AI applications. This specialized memory is now being prioritized over standard consumer-grade chips.
Nvidia, the world's first $5 trillion company, continues to dominate the AI chip market. This week, the company struck a landmark $20 billion non-exclusive licensing deal with chip startup Groq, its largest-ever acquisition, demonstrating how tech giants are leveraging their massive cash reserves to maintain AI market dominance.
Analysts predict that device manufacturers may need to absorb higher component costs or pass them on to consumers, potentially adding $50-100 to the price of premium smartphones and laptops by mid-2026.
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