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AI Data Centers Are Draining Memory Supply, Pushing Up Gadget Prices

Suppliers favor higher margin AI contracts, prolonging tight supply.

Overview

  • Micron CEO Sanjay Mehrotra said AI will consume more than half of global DRAM and NAND output in 2026, signaling a prolonged shortage in core memory parts.
  • Apple CEO Tim Cook warned rising memory costs will weigh on the company’s results, and Apple has dropped the 256GB Mac mini option as the entry price increased.
  • Samsung, SK Hynix, and Micron are steering capacity toward data centers, and IDC estimates roughly 70% of memory chips produced in 2026 will go to servers that run AI.
  • Consumers are already paying more or getting less memory, with price hikes across major phone brands in India and lower base storage on devices such as Motorola’s latest Razr.
  • Analysts cited by the Financial Times see relief only after 2028, even as Micron ships HBM4 for Nvidia’s next platform and reports its 2026 high‑bandwidth capacity is sold out.