AI memory is sold out, causing an unprecedented surge in prices

Core Insights - The global demand for RAM is exceeding supply due to the high requirements from companies like Nvidia, AMD, and Google for their AI chips [1][2] - Major memory vendors Micron, SK Hynix, and Samsung are experiencing significant business growth due to this surge in demand [2][3] Company Performance - Micron's stock has increased by 247% over the past year, with net income nearly tripling in the latest quarter [3] - Samsung anticipates its operating profit for the December quarter to nearly triple, while SK Hynix is considering a U.S. listing due to rising stock prices [3] Price Trends - TrendForce predicts that average DRAM memory prices will rise by 50% to 55% in the current quarter compared to Q4 2025, marking an unprecedented increase [4] - The price of RAM for consumers has surged dramatically, with examples of costs rising from approximately $300 to around $3,000 within months [9] Memory Technology - HBM (high-bandwidth memory) is essential for AI chips and is produced through a complex process that limits the production of conventional memory [6][7] - The demand for HBM is prioritized over other memory types due to higher growth potential in server and AI applications [7] Industry Challenges - Micron has decided to discontinue certain consumer memory products to allocate more supply for AI chips and servers [8] - The memory shortage is expected to impact consumer electronics companies, with memory costs now accounting for about 20% of laptop hardware costs, up from 10%-18% in early 2025 [15] Future Outlook - Nvidia's CEO highlighted the need for more memory factories to meet the high demand driven by AI applications [18] - Micron is building new factories in Idaho and New York, expected to come online in 2027, 2028, and 2030, respectively, but currently, they are "sold out for 2026" [19][20]