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Artificial intelligence spending is pushing up prices for laptops, smartphones, gaming consoles, and other consumer products. Memory chip makers are shifting production toward advanced components used in AI data centres, leaving fewer chips for standard electronics.
The supply squeeze has gained the nickname “RAMaggedon,” referring to rising prices for random-access memory. Industry executives expect the shortage to worsen in 2027 and stay tight through 2028.
Computer shops in Hong Kong are posting articles about the memory shortage beside their price lists. Store managers say many customers do not understand why basic computer parts now cost several times more.
At Videocom Computer, manager Ken Tam said 16 gigabytes of RAM once cost HK$300 to HK$400. The same amount now costs about HK$1,500. He said business has fallen by half since prices began rising in September. “When it suddenly gets so expensive, customers have a psychological barrier,” Tam said.
Meanwhile, analysts say prices for memory used in personal computers and smartphones have climbed five to six times from last year. The rise follows a production shift toward high-bandwidth memory, known as HBM, which supports AI servers and advanced computing systems.
Samsung Electronics, SK hynix, and Micron have benefited from strong demand for HBM. However, the shift has reduced supplies of conventional DRAM used in laptops, phones, and other devices.
The shortage is already changing buying decisions. Some customers are upgrading older computers instead of purchasing new machines. Henry Wong, an investment banker in Hong Kong, said a memory upgrade made his laptop run smoothly. “I stopped wanting to buy a new computer,” he said.
In Tokyo, graphic designer Charles Brousse said RAM, graphics cards, and motherboards have reached “ridiculous levels.” His custom computer service now requires clients to buy their own parts before he assembles the machines.
Higher component costs have also reached game consoles and personal computers. Reports say prices have increased for Sony PlayStation and Microsoft Xbox products. Software prices are also rising as companies add paid AI tools to existing services.
Microsoft 365 prices rose sharply in February, according to reports. The increase came as Microsoft expanded spending on AI products, including Copilot. The company invested $37.5 billion in AI tools during its fiscal second quarter of 2026.
Memory chips are not the only source of higher costs. AI data centres also use large amounts of electricity and water. The United States has more than 4,600 active data centres, according to industry data.
Economists say data centres can raise wholesale electricity prices by competing for limited power supplies. Barclays economist Pooja Sriram said data centres are “demanding huge amounts of power” and paying prices that can lift residential electricity costs.
US residential electricity use rose rapidly in 2025 and continued accelerating in 2026. Electricity prices are now about 4% higher than a year earlier in inflation-adjusted terms, according to reports.
Moody’s Analytics chief economist Mark Zandi estimated that AI-related inflation forces households to spend more for the same goods and services. He said households now pay “just over $375 more” than a year earlier due to AI’s inflationary effect.
Automakers are also reporting higher costs for in-vehicle computer systems. Memory shortages could therefore raise new vehicle prices if chip supplies stay tight. Samsung’s finance chief expects the shortage to deepen in 2027 and continue through 2028.
