Tech Firms From Dell to HP Warn of Memory Chip Squeeze From AI

Core Insights - Tech companies, including Dell Technologies and HP, are warning of potential memory-chip supply shortages due to increased demand from artificial intelligence infrastructure buildout [1][3] - Consumer electronics manufacturers, such as Xiaomi and Lenovo, are anticipating price increases and are stockpiling memory chips in response to rising costs, with a forecasted 50% price rise for memory modules through Q2 of next year [2][3] Industry Impact - A shortage of memory chips could lead to increased manufacturing costs for a wide range of products, including phones, medical equipment, and cars, as these chips are essential for data storage in modern electronic devices [3] - The AI boom is contributing to the shortage as manufacturers prioritize production for more complex and profitable AI-related products, impacting the availability of more common memory types [3] Company Responses - Dell has reported unprecedented cost increases and tighter supplies of dynamic random access memory (DRAM), NAND flash memory, and hard drives, indicating that these cost increases will inevitably affect customers [4][6] - HP anticipates significant challenges in the latter half of 2026 and plans to increase prices where necessary, while also exploring options to mitigate the impact of memory shortages [5][6] - Companies are taking proactive measures, such as bringing on more memory suppliers and reducing memory in products, with memory accounting for 15% to 18% of the cost of a typical PC [6]