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Global AI demand driving up cost of RAM, SSDs, could spell end for budget computers
BUILDING or upgrading a personal computer (PC) used to be relatively straightforward. Wait a year or two, buy a faster graphics card, add more random access memory (RAM) and enjoy stronger performance without spending much more money.
That expectation is starting to change.
Gamers, PC builders and everyday laptop buyers are noticing that many core computer components now cost far more than they did just a few years ago. Memory kits have become noticeably more expensive. Solid state drives are creeping upward in price.
Even budget laptops are becoming harder to find.
A major reason sits behind the scenes of modern technology: Artificial intelligence (AI).
RAM prices climbing fast
One of the clearest examples is RAM.
RAM is the short-term working memory of a computer. It allows a device to run several applications at the same time, handle demanding games and keep dozens of browser tabs open.
Since late 2025, RAM prices have risen sharply worldwide.
Industry analysts reported that memory prices increased around 80% to 90% in early 2026 compared with the previous quarter. During 2025, DRAM prices increased by more than 170% in some segments as supply tightened.
For anyone building a PC, that means the cost of a basic memory upgrade now feels significantly higher than expected.
The price surge is directly linked to the computing power required by AI.
AI servers consume enormous memory
AI systems process vast amounts of data. Training and running large AI models require hardware capable of moving huge datasets extremely quickly.
To achieve that performance, AI servers use specialised memory designed for very high speed data transfer.
The difference in scale is enormous. A single AI server can require as much advanced memory as dozens or even hundreds of laptops. When companies build data centres containing thousands of these machines, they absorb a large portion of global memory supply.
That demand is now reshaping how memory manufacturers operate.
Instead of focusing heavily on standard consumer RAM, many production lines are shifting toward high performance memory designed specifically for AI infrastructure.
Less supply for everyday hardware naturally leads to higher prices.
Big tech buying supply
The companies driving demand are some of the largest technology firms in the world.
Cloud providers such as Google, Amazon, Microsoft and Meta are investing billions into AI infrastructure. Nvidia’s AI processors also rely on large quantities of advanced memory to function.
Some projects are so large they consume an enormous share of global production. Reports indicate that one major AI infrastructure initiative could require up to 40% of global DRAM output.
When companies with huge budgets compete for hardware, suppliers prioritise those contracts.
For consumers browsing PC parts online, the result simply appears as higher prices.
Storage prices rising too
Memory is not the only component affected.
Storage devices are also feeling the pressure. NAND flash, the technology used in solid state drives, has seen major price increases as manufacturers prioritise high capacity storage for data centres.
Hard drives used for large scale data storage are also in strong demand. Some manufacturers have already reserved much of their production capacity for enterprise customers building AI infrastructure.
Even materials used in semiconductor manufacturing are becoming harder to obtain as global chip production expands.
Together, these pressures push costs higher across the entire hardware supply chain.
Budget computers may disappear
For consumers, the biggest change may be fewer affordable computers.
Research firm Gartner estimates memory will account for about 23% of a PC’s manufacturing cost in 2026, up from around 16% the previous year. That increase makes it difficult for manufacturers to produce low-cost laptops while maintaining profitability.
Analysts expect computers priced below US$500 (RM2,016) to gradually disappear by 2028 as companies focus on higher-end systems that can absorb rising component costs.
Higher prices may also extend upgrade cycles, with many consumers choosing to keep existing devices longer rather than purchasing new hardware.
AI ripple effect
AI is transforming how technology companies operate. Building the infrastructure required for AI systems demands enormous amounts of computing hardware.
That race for hardware is now influencing the prices of everyday technology.
For people assembling a gaming PC, upgrading a laptop or replacing an ageing desktop, the impact is increasingly clear.
The same technology powering chatbots and AI tools is also making the parts inside personal computers more expensive.