#memory-and-storage-inflation

#memory-and-storage-inflation

"This is where I think our R&D has done exceptionally well in terms of leveraging existing EUV technology while setting an aggressive technology scaling roadmap," says Kevin Zhang, deputy co-chief operations officer and senior vice president at TSMC. "This is definitely a strength."

After Google released its TurboQuant compression algorithm, which can purportedly drastically reduce the amount of memory required for certain AI workflows, stock prices for memory manufacturers dropped significantly.

The flagship models of the Surface Laptop and Surface Pro now cost $1,499 - $500 more than they did at launch in 2024.

DRAM contract prices are now expected to rise around 90 to 95 percent quarter-over-quarter. NAND flash similarly sees a huge jump, with expected prices ballooning by 55 to 60 percent compared to Q4 2025. Specifically, PC DRAM prices could more than double even from their elevated positions late last year. This will invariably result in overall price increases across all product categories, though varying in significance depending on component costs.

US PC shipments are set to fall by 13 percent this year thanks to the ongoing memory and storage crisis, with budget PCs hardest hit. Memory and storage costs will see at least a 60 percent increase during Q1 2026, compounding last year's rises of 40 to 70 percent.

AI-driven memory and storage price hikes have been the defining feature of the PC industry in 2026, and hobbyists have been hit the hardest-companies like Apple with lots of buying power have been able to limit the price increases for their PCs, phones, and other gadgets so far, but smaller outfits like Valve and Raspberry Pi haven't been so lucky.

Do you have a phone in your pocket you'd like to upgrade in the next few years? Fancy a game console or handheld? A laptop, perhaps? Will you need a new router, whether you're purchasing outright or renting from your ISP? Each of these devices is expected to have shortages, price hikes, or both in 2026. And even if you don't plan to buy, you depend on goods and services from others who'll be paying more to upgrade their devices.