HBM consumes around three times the wafer capacity of DDR5 per gigabyte (www.tomshardware.com)

The memory market is facing significant turmoil as demand for high-bandwidth memory (HBM) from AI hyperscalers is drastically impacting the supply of conventional DRAM, particularly DDR5. HBM, essential for AI accelerators, uses approximately three times the wafer capacity per gigabyte compared to DDR5, which has led to skyrocketing prices for RAM kits. Reports indicate that contract DRAM prices surged by 500% in just two months, affecting pricing structures across the board, including a notable 2-4x increase for consumers looking to purchase RAM. As a result, PC builders and other device manufacturers are left competing for the dwindling supply of commodity DRAM, making it challenging for them to fulfill consumer needs. This supply constraint is not merely a short-term issue; it is expected to persist well into 2027 due to the prioritization of resources for AI memory production. Major chip manufacturers like Micron, SK Hynix, and Samsung are diverting their efforts towards high-margin AI contracts, effectively sidelining consumer products. This shift in focus means that emerging consumer technologies—and their memory configurations—will be dictated largely by the AI boom, resulting in higher prices and potentially slower innovation in the consumer hardware space. Without new fabs coming online until at least 2027, the situation is unlikely to improve, leading to a longer-term readjustment in how memory is allocated across various sectors.