The memory market is anticipating a significant surge in costs as semiconductor manufacturers shift their focus towards AI server production, leaving consumer gadgets in a lurch. Analysts predict an aggressive double-digit rise in memory prices within the first quarter of 2026, driven by surging demand.

Major players like Samsung Electronics and SK hynix intend to elevate server memory prices by as much as 70% this quarter, building on a 50% increase last year, potentially doubling memory costs by mid-2026. These firms, alongside Micron in the U.S., have realigned advanced manufacturing towards high-profit server DRAM and HBM chips supporting AI, limiting available supply for PCs and smartphones.

This repositioning aligns with forecasts from financial analysts who have adjusted earnings predictions upwards, anticipating profit prospects tied to the AI infrastructure boom that escalates overall pricing pressures.

TrendForce reports a steep 55-60% hike in conventional DRAM prices over a single quarter, without signs of easing as supplier inventories diminish and wafer output struggles to meet rising shipment demands. Projections indicate a further 60% price increase for server DRAM through Q1 2026.

While manufacturers prioritize server components, supply remains tight, potentially driving further inflationary pressures. IDC highlighted a notable shortage before Christmas, warning of long-term implications for hardware producers and consumers extending into 2027.

The voracious demand from AI-driven hyperscalers like Microsoft, Google, and Amazon fundamentally shifts silicon wafer allocations from consumer tech, limiting available general-purpose memory and elevating market-wide prices.

According to IDC estimates, DRAM and NAND supply growth will trail at just 16% and 17%, respectively, significantly lower than historical averages, prompting stock surges in major chipmakers, with Micron seeing a 240% increase in shares last year. Samsung and SK Hynix have also seen substantial market gains, forecasting significant profit growth in upcoming earnings releases.

As economic analysts caution, the inflationary risks tied to AI infrastructure spending are emerging as a concealed yet potent economic threat.