The cost of memory components, including RAM and SSDs, is projected to experience substantial price hikes through the remainder of 2026 and into 2027, according to an analysis by Jefferies Equity Research. The surge is primarily attributed to the escalating demand from AI data centers, which are consuming a significant portion of available memory stock.
Projections suggest that memory prices could rise by 40% to 50% in the third quarter of 2026. This upward trend is expected to continue, with an additional 30% to 40% increase anticipated in the fourth quarter of the same year. Looking ahead to 2027, the research indicates a further price escalation of 40% to 45% year-on-year.
A potential recovery in the memory market is not expected until 2028, with Jefferies forecasting only a modest increase in production of approximately 15% to 20%. While some industry figures, such as former Samsung boss Kyung-Hyeon Kye, had anticipated an earlier resolution to the memory crisis due to increased manufacturing capacity in China, current market dynamics suggest that Chinese memory products are not significantly undercutting established prices.
This developing memory crisis has already begun to affect consumers seeking to build new PCs or upgrade existing systems. The impact is also extending beyond PC hardware, with major technology companies like Apple announcing price increases for devices such as iPads and Macbooks, with iPhones also expected to follow suit. The extent to which consumers will continue to prioritize infrastructure for AI development over personal device affordability remains a key question.
The persistent demand from AI ventures, coupled with significant operational costs, such as OpenAI's reported $38.53 billion loss in 2025, has fueled the current market conditions. It is unclear whether these factors will lead to a definitive market correction or a stabilization at a new, higher price point for memory components.