A surge in AI data center spending is straining the global memory chip market, driving prices higher and setting up a shortage that industry leaders expect to last through at least 2027.
The aggressive investment in artificial intelligence infrastructure has sharply increased demand for memory chips, especially high-bandwidth memory used in AI servers.
As tens of billions of dollars flow into data centers, the memory supply has shifted heavily toward AI workloads, leaving fewer chips available for consumer electronics such as smartphones, PCs, and laptops.
Industry Leaders Warn of Prolonged Shortage
Sassine Ghazi, CEO of Synopsys, Inc. (NASDAQ:SNPS), told CNBC on Monday that most output from leading memory suppliers is now absorbed by AI infrastructure, crowding out other end markets. “Now it’s a golden time for the memory companies,” Ghazi said.
Financial markets are already reflecting the shift. Micron Technology, Inc. (NASDAQ:MU) is up over 328% in the past year, while SK Hynix and Samsung Electronics Co., Ltd (OTC:SSNLF) have posted strong gains in 2026.
He said the industry lacks spare capacity, creating shortages across non-AI products.
Ghazi said the current chip crunch is likely to persist through 2026 and 2027 because expanding memory manufacturing takes at least two years to bring new capacity online.
Leading memory producers Samsung, SK Hynix, and Micron are working to expand production, but near-term relief remains limited.
Rising Prices Pressure Electronics Makers
Rising memory prices are already pushing electronics makers to consider price increases.
Ghazi said higher prices are already taking effect.
Lenovo Group Ltd. (OTC:LNVGY) CFO Winston Cheng also said demand continues to exceed supply, and manufacturers are positioned to pass higher costs along.
He noted that ongoing PC upgrades tied to Microsoft Corp.’s (NASDAQ:MSFT) Windows 11 release continue to support demand, even as cost pressures build across the industry.
Samsung and SK Hynix Battle for AI Memory Leadership
Meanwhile, Samsung is accelerating its push into next-generation AI memory as it moves to start producing HBM4 chips and line up Nvidia Corp. (NASDAQ:NVDA) as a key customer, aiming to close the gap with market leader SK Hynix.
Samsung plans to begin HBM4 manufacturing as early as next month and is preparing initial shipments after reportedly passing qualification tests for both Nvidia and Advanced Micro Devices, Inc. (NASDAQ:AMD).
At the same time, SK Hynix is working to protect its dominant position.
The company has already locked in supply talks with major customers for next year and is expanding capacity, with plans to begin feeding wafers into a new fabrication plant in South Korea to boost HBM output.
The rivalry is intensifying as Nvidia readies its next-generation Vera Rubin AI platform, which will pair with HBM4 memory.
With demand surging, both Samsung and SK Hynix have raised memory prices sharply.
Photo by Tada Images via Shutterstock
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