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AI Boom Drives DRAM Shortage and Skyrocketing Memory Prices
Demand for high-bandwidth memory (HBM) used in AI data centers is straining DRAM supply and causing prices to surge.
Feb. 11, 2026 at 3:47am
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The booming demand for AI-powered technologies is fueling a severe shortage of DRAM (Dynamic Random-Access Memory) and driving up prices significantly. The primary driver is the growing need for high-bandwidth memory (HBM) used in GPU-powered AI data centers, which can cost three times more than traditional DRAM. This collision of cyclical DRAM supply issues and the unprecedented scale of AI infrastructure build-out has led to an 80-90% price increase in the current quarter, with further hikes expected through 2026.
Why it matters
The DRAM shortage is impacting a wide range of industries, from consumer electronics to enterprise computing. As AI models continue to grow in size and complexity, the reliance on HBM will only increase, further straining supply and driving up costs. This could lead to higher prices for devices like PCs and gaming consoles that rely on DRAM, as well as potential delays in the rollout of new AI-powered technologies.
The details
The DRAM shortage is being driven by the rapid growth of AI data centers, which require large amounts of high-bandwidth memory (HBM) to power their GPU-based accelerators. HBM utilizes 3D chip packaging to stack multiple DRAM dies, providing significantly more bandwidth and performance than traditional DRAM. However, HBM is also much more expensive, accounting for up to 50% of the total cost of a GPU. As AI models become larger and more complex, the demand for HBM has skyrocketed, diverting supply from other sectors and causing prices to surge.
- In the current quarter, DRAM prices have already risen 80-90%.
- Prices are expected to increase by an additional 30% in Q4 2025 and 20% in early 2026.
- Earlier in 2025, DRAM prices had already risen by 50%.
The players
Micron
A major DRAM producer that reported HBM and other cloud-related memory accounted for nearly 50% of its DRAM revenue in 2025, up from 17% in 2023.
Samsung
A leading DRAM manufacturer that plans to start production at a new plant in South Korea in 2028.
SK Hynix
A DRAM producer that is building HBM and packaging facilities in Indiana (production by 2028) and an HBM fab in Cheongju (completion in 2027).
Nvidia
A leading GPU manufacturer whose data center revenue has soared from barely $1 billion in late 2019 to $51 billion in October 2025.
Intel CEO Lip-Bu Tan
Stated that there will be 'no relief until 2028' for the DRAM shortage.
What they’re saying
“There will be 'no relief until 2028.'”
— Lip-Bu Tan, CEO, Intel
What’s next
Addressing the supply shortage requires both innovation and increased production capacity. Micron, Samsung, and SK Hynix are all investing in new fabs and facilities, but these won't significantly impact prices for several years.
The takeaway
The DRAM shortage driven by the AI boom highlights the cyclical nature of the memory market and the challenges of keeping up with rapidly growing demand for advanced technologies. Consumers can expect higher prices for devices reliant on DRAM, while industry leaders work to expand production capacity and develop more efficient memory solutions.
