Artificial intelligence isn’t just transforming industries… It’s also disrupting the hardware market.
The rise of advanced models such as those developed by companies such as OpenAI and Google has triggered the demand for data centers capable of training and running increasingly complex systems. These centers require huge amounts of memory, especially DRAM and high-bandwidth memory (HBM).
What’s happening?
1️. Data Center Priority
Manufacturers are allocating more of their production to AI servers, reducing production for PCs and consumer devices.
2️. Lower availability in the traditional market
With less stock for the mass market, prices tend to rise.
3️. Pressure on the entire chain
From laptops, to consoles, to smartphones, the price increase for memory is impacting final consumer prices.
Why are prices rising?
Memory production is a market concentrated within a few sector giants, such as Samsung Electronics, SK Hynix and Micron Technology.
When these companies prioritize (more cost-effective) lines of memory for AI, the supply for the traditional consumer market is affected… and the price responds.
Tomilli
