The current scarcity of RAM chips is anticipated to continue into next year and is expected to escalate further in 2027, with tight supply conditions remaining until at least 2028, as per Samsung, which produces and supplies approximately one-third of the global memory chip market.

During its Q2 earnings call, Samsung mentioned that leading AI laboratories, eager to gain access to memory infrastructure, have been “providing their medium- to long-term demand projections” straight to the Korean tech firm to ensure future supply.

The elevated demand allows Samsung to give preference to clients who are willing to enter into long-term agreements. This extended visibility will enable the company to set up equipment and increase production without the concern of dwindling demand, thereby helping it steer clear of the typical boom-and-bust cycles in the memory sector.

Shortages in memory fueled by the AI surge have also led to increases in chip prices lately. This situation has proven to be a double-edged sword for Samsung: while its semiconductor division recorded unprecedented sales in Q2, profits in its smartphone and TV sectors decreased due to the soaring component costs attributed to the pricier chips.

Samsung has begun to pass some of those rising component costs onto consumers by raising the prices of its Galaxy smartphones and tablets. However, this has led to a decline in demand for these products.

The ongoing memory shortage, informally referred to as “the RAMaggedon,” has also compelled Apple, Samsung’s main competitor, to increase the prices of its MacBooks, Macs, and iPads last month. In its latest earnings call, Apple cautioned that revenue growth for the upcoming quarter is expected to decelerate to between 9% and 11% year-over-year, down from its recent rate of 16% quarterly growth.

With memory manufacturers reallocating production capacity toward AI data centers instead of consumer electronics, consumers are encountering a new reality: higher device prices. Nvidia is anticipated to boost its consumer graphics card prices by 20% to 30%, which could further escalate prices for gaming devices, desktop computers, consoles, laptops, and similar products.