- The AI boom has created a windfall for some chip makers, including Micron, which reported that its quarterly revenue had quadrupled.
- Micron increased prices for DRAM chips more than 60% in the quarter ending May 28, while shipments increased by a low single-digit percentage.
- Prices for memory chips have quadrupled in a year, impacting sectors outside of AI.
- NAND flash memory prices jumped more than 80% this year.
- Micron's customers paid $18 billion more in just one quarter.
- The pricing changes for Xbox consoles will see the cost of a new console be 30% to 40% more expensive than it was this time last year.
- Apple has raised the prices of its tablets and laptops by nearly 20%.
- There is an extraordinary transfer of cash from the providers of AI to memory-chip makers.
- Yang Wang, principal analyst at Counterpoint Research, called the memory crisis 'the most disruptive supply-side event the smartphone industry has ever faced'.
- Apple's announcement cited an 'unprecedented challenge' with memory chips facing the industry, indicating that the cost of massive AI investment is finally coming to bear.
- The race to build out AI data centres is resulting in a swift and significant increase in demand that chip makers are rushing to meet.
- According to Counterpoint Research, some 32GB DDR5 components for PCs jumped from $94 in the three months to September 2025 to $127 in the next three months.
- RSM UK's tech senior analyst James Bull noted that the four largest US tech firms are expected to spend hundreds of billions of dollars on data centres and AI equipment in 2026.
- When Sony announced further price increases to the PS5 console, it cited 'continued pressures in the global economic landscape'.
- Bernie Sanders criticized Apple's move, stating it amounted to 'corporate greed'.
- Counterpoint's VP of research Neil Shah expects a 'constrained supply situation' to last for as long as two years.
Micron Technology has experienced a remarkable surge in revenue, quadrupling in the latest quarter, driven by the booming demand for AI-related memory chips.12
In the quarter ending May 28, Micron raised prices for DRAM chips by more than 60% and for NAND flash memory by over 80%. This price increase resulted in an additional $18 billion in revenue for Micron alone during that quarter.45
The AI boom has led to a significant transfer of funds from AI providers to memory-chip manufacturers, with analysts noting that the memory crisis is one of the most disruptive supply-side events in the smartphone industry.9
As a result, tech giants like Apple have raised prices for their products, with tablets and laptops seeing increases of nearly 20%, while new gaming consoles are now 30% to 40% more expensive than last year.67
According to Counterpoint Research, the demand for memory chips is expected to remain high, with a constrained supply situation anticipated to last for up to two years.1216
Prominent figures, including Senator Bernie Sanders, have criticized these price hikes, labeling them as corporate greed.15
As the race to build AI data centers accelerates, the tech industry faces unprecedented challenges in managing costs and supply chains.10
“Chip makers, including Micron, are experiencing a windfall due to the AI boom, with quarterly revenues quadrupling. This surge is leading to significant price increases for tech products, impacting consumers and industries alike.”
WSJ
