AI is eating up the world's computing memory - marketplace-tech Recap

Podcast: marketplace-tech

Published: 2026-01-13

Duration: 8 minutes

Guests: Tom Mainelli

Summary

The surge in AI demand has caused a global shortage of memory hardware, impacting PCs, smartphones, and consumer electronics. This shortage is expected to last until at least 2026, affecting prices and availability.

What Happened

AI technologies are creating a massive demand for high-bandwidth memory, critical for training and running AI models. This demand has led to a global shortage of memory chips, not just for AI applications but also for consumer electronics like PCs and smartphones.

Tom Mainelli from IDC explains that the memory industry typically experiences cycles of boom and bust, where oversupply is followed by shortages. The current AI-driven demand is a new factor that could prolong the shortage until 2026 or even 2027.

With only a few companies capable of producing high-bandwidth memory, the shortage has intensified. Companies like Micron are prioritizing data centers over the consumer market, further straining supply for everyday electronics.

Mainelli points out that larger PC vendors like HP, Dell, and Lenovo will likely handle the shortage better than smaller companies, leading to a potential market share shift. Smaller vendors may struggle to secure memory allocations at competitive prices.

The rise of AI PCs, which require more memory, exacerbates the situation. As more devices need higher RAM capacities for AI functionalities, consumers may face increased prices and limited options.

Consumers building custom gaming PCs are particularly affected, as these systems demand high-performance memory. The push for AI-enabled PCs coincides with a spike in memory costs, making it a challenging market for enthusiasts.

Mainelli shares personal insights, noting that installment plans for smartphones might mitigate some consumer pain, but upfront PC costs will still be a burden. The shortage affects all memory-dependent devices, from smartphones to wearables.

He concludes by highlighting the need for consumers to prioritize their purchases and manage expectations regarding device capabilities and availability over the next few years.

Key Insights

• The global demand for high-bandwidth memory driven by AI technologies has led to a shortage affecting both AI applications and consumer electronics like PCs and smartphones, with the shortage potentially lasting until 2026 or 2027.
• With only a few companies capable of producing high-bandwidth memory, firms like Micron are prioritizing data centers over consumer markets, intensifying the shortage for everyday electronics.
• Larger PC vendors such as HP, Dell, and Lenovo are expected to manage the memory shortage better than smaller companies, potentially leading to a shift in market share as smaller vendors struggle to secure competitive memory allocations.
• The rise of AI PCs, which require more memory, is contributing to increased prices and limited options for consumers, particularly affecting those building custom gaming PCs that demand high-performance memory.