RAM Prices Are Soaring, Now Sold Like Lobster

A severe RAM shortage, fueled by high demand from the AI industry, is causing prices to triple. Retailers are now selling PC memory at volatile market prices.
RAM Prices Are Soaring, Now Sold Like Lobster

Key Takeaways

  • A global RAM shortage is causing prices for PC memory to skyrocket, with some kits more than tripling in price over just three months.
  • In response to extreme price volatility, major retailers like Micro Center and Central Computers have stopped listing fixed prices, instead selling RAM at daily “market prices.”
  • The shortage is largely attributed to the booming AI industry, which is diverting advanced DRAM manufacturing capacity away from consumer electronics.
  • The price crunch is expected to impact other tech products, including graphics cards, gaming consoles like the Xbox, and smartphones.

A severe shortage in the global memory market is causing RAM prices to surge to unprecedented levels, forcing some retailers to adopt a “market price” model typically reserved for fresh seafood. This volatility is creating significant uncertainty for PC builders and could soon affect the broader consumer electronics market.

Retailers Shift to “Market Price” Model

Computer hardware stores, including San Francisco’s Central Computers and the national chain Micro Center, are no longer displaying fixed prices for RAM modules. Instead, customers are greeted with signs explaining that prices are fluctuating daily due to limited supply and high demand.

“Due to market volatility, we ask that you please see a Sales Associate for price,” a sign at a Micro Center store read, as captured by a user on Reddit. This move highlights just how unstable the market has become, with stores unable to guarantee a price for more than a day at a time.

The price hikes are dramatic. One 32GB DDR5 kit that cost $130 just three months ago has now more than tripled in price to over $440. Other kits have seen prices double since October, pushing the cost of a 64GB setup to as high as $900.

The AI Connection: Why Are Prices Surging?

The primary driver behind the shortage is the explosive growth of the artificial intelligence sector. Epic Games CEO Tim Sweeney explained that the situation may not resolve quickly.

“Factories are diverting leading edge DRAM capacity to meet AI needs where data centers are bidding far higher than consumer device makers,” Sweeney stated in a post on X (formerly Twitter). He warned it could take “years for high-end gaming to recover from the RAM crunch.”

This diversion of resources means less memory is available for consumer-grade products like desktop PCs, laptops, and smartphones, leading to intense competition for the remaining supply.

Broader Impact on the Tech Industry

The RAM crisis isn’t just a headache for DIY PC enthusiasts. The ripple effects are expected to be felt across the tech landscape.

Graphics card manufacturers like Nvidia and AMD, which rely on large amounts of VRAM for their products, are reportedly preparing to raise GPU prices to compensate for the higher memory costs. This comes just as GPU prices had begun to stabilize after years of volatility.

The gaming console market may also be hit. Leaks suggest Microsoft might need to increase the price of its Xbox consoles, while Sony’s stockpile of RAM for the PlayStation 5 is only expected to last a few more months. Even Valve has cited the RAM crunch as a reason for uncertainty in pricing its upcoming Steam Machine. As the AI industry continues to consume a massive share of the world’s memory supply, consumers should brace for higher prices across a wide range of tech products.

Image Referance: https://www.theverge.com/news/828337/ram-memory-shortage-crunch-market-prices-central-micro-center