A severe memory-chip shortage, driven by the AI data-center boom, is pushing up prices for GPUs and a wide range of consumer electronics, with manufacturers passing higher costs on to shoppers.

The squeeze follows a semiconductor boom-and-bust cycle: after pandemic-era demand faded and memory prices fell, Samsung, SK Hynix and Micron cut production and delayed investment, just as AI demand began surging again.

AI systems require large quantities of high-bandwidth memory (HBM), which competes with conventional DRAM for wafer capacity and earns roughly a 30 percent premium, giving suppliers an incentive to shift production toward it.

The transition from DDR4 to DDR5 has added another constraint, while restarting production and building new capacity can take years.

Micron, Samsung Electronics and SK Hynix account for roughly 90 percent of global DRAM production, and all expect prolonged shortages despite expanding capacity; Micron ended direct-to-consumer sales in 2025 to focus on AI production.

Suppliers have already committed much of their future output: Micron reportedly sold 75 percent of its 2027 HBM production, while Samsung sold nearly 80 percent of its 2027 memory output, about 70 percent of it under five-year contracts.

Executives warn the tightness could worsen before it improves: Micron CEO Sanjay Mehrotra expects supply to be tighter in 2027 and 2028 than in 2026, while SK Hynix CEO Kwak Noh-jung called 2027 a potential record-worst year for supply; chairman Chey Tae-won said adequate wafer capacity could take four to five years to build, with demand outstripping supply until at least 2030.

Consumers are already seeing steep increases: NIQ found September graphics-card prices were nearly double a year earlier, desktop PCs cost 41 percent more, and laptops, tablets and smartphones also rose significantly.

GPU prices have surged as well: Tom’s Hardware tracked Nvidia’s GeForce RTX 5090 at $4,920, compared with its $1,999 launch price in January 2025, while some gaming GPUs in Japan cost about 41 percent more than their US counterparts.

The outlook beyond the near term is disputed: some executives and analysts expect prices to plateau or supply to improve from 2029, potentially with Chinese competition, while Nvidia CEO Jensen Huang rejected the prospect of a surplus, arguing that users can always use more memory.

The uncertainty is complicating business planning: Bitkom says companies struggle to predict prices and availability, while the HDE expects weaker year-end sales at many nonfood retailers as price-sensitive consumers reconsider expensive purchases.

For shoppers, consumer advocates recommend scrutinizing Black Friday and holiday deals for reduced storage at the same price, comparing offers across retailers and checking advertised discounts against recent price histories.