Signal AI-driven memory chip demand pushes up smartphone/PC prices

Summary

Samsung, SK Hynix and Micron — the three firms controlling nearly all global memory production — are redirecting capacity toward high-bandwidth memory (HBM) for AI accelerators, which now consumes an estimated 20%+ of global DRAM wafer output in 2026 (up from 19% in 2025) and is projected to grow another 70% year over year, squeezing conventional DRAM and NAND supply for phones and PCs; Micron has said it is essentially sold out for 2026. AI memory chip stocks from all three firms crossed $1 trillion in valuation each in May 2026, a combined $3 trillion. IDC warns sub-$100 entry-level phones will effectively disappear in 2026, with average smartphone price hitting a record $523, while Counterpoint Research found mobile DRAM prices up nearly 70% since early 2025 and NAND flash nearly doubled, pushing memory to over 20% of a mid-range smartphone's build cost versus 10-15% previously; budget devices under $200 face 20-30% production cost increases. On the PC side, DRAM prices are up 90-95% and NAND 55-60% since early 2025, prompting Lenovo, Acer and ASUS to warn of 15-20% device price increases, with HP saying memory now represents 35% of PC bill-of-materials; Samsung and Apple's long-term supply agreements shield Apple somewhat, while budget Android OEMs have no such cushion. Samsung and SK Hynix warn the shortage could persist until 2027 or beyond, with SK Hynix's CEO calling 2027 potentially the industry's worst supply year, though quarter-over-quarter price increases are expected to moderate to 13-18% in Q3 2026 from roughly 60% in Q2 as consumer affordability limits are reached.