As AI gobbles up chips, prices for devices may rise (www.npr.org)

A severe shortage of RAM chips, particularly dynamic random access memory (DRAM), is emerging due to skyrocketing demand fueled by rapid AI advancements in cloud computing and data centers. TrendForce's Avril Wu indicates that current demand exceeds supply by 10%, with prices for RAM chips increasing by around 50% in just one quarter. Experts predict that DRAM prices may rise an additional 40% in the upcoming quarter and remain high into 2026, impacting the cost of consumer electronics like smartphones, PCs, and gaming consoles. This scarcity is particularly significant for the AI and machine learning community, as cutting-edge AI workloads necessitate large, persistent memory resources. With major companies, like Idaho-based Micron Technology, pivoting production towards meeting AI demands, sectors such as personal computing and consumer electronics may face reduced supply and higher prices. As this trend continues, analysts caution that the chip industry is likely facing a bottleneck, limiting immediate production increases and driving costs further up for end consumers.