What is Ramageddon? Why is artificial intelligence making laptops and phones more expensive?

You’ve probably heard people say that Artificial Intelligence is coming to your business. But now, it’s coming for you Budget laptop.

The latest tech panic has an appropriately dramatic name: Ramageddon. It refers to universality Shortage of memory chips supply laptop prices increase, Phonesgraphics cards and other devices.

Artificial intelligence data centers You need huge amounts of memory, especially the premium type called high-bandwidth memory, or HBM. Demand for big tech companies is huge, margins are better, and chip makers are following the money. The AI ​​industry has become its main goal, which is to pull supply toward servers and away from regular consumer technology.

So what does this mean for you, and how could it affect your next laptop or smartphone purchase? Let’s dig deeper.

What is Ramageddon?

RAMageddon is the nickname for an AI-induced memory shortage affecting consumer electronics.

Before we get into all the technical stuff, some memory terms might help explain what’s going on.

• RAM, or random access memory, helps your device juggle tasks. More RAM usually means smoother multitasking, faster switching between apps, and better performance when you have a lot of browser tabs open because obviously that’s how we all live now.
• DRAM, or dynamic random access memory, is the working memory used by computers, smartphones, servers, and PCs Graphics cards.
• NAND is the storage memory used in smartphones, flash drives, and solid-state drives, which are the storage drives inside them Most modern laptops And desktop computers.
• HBM, or high-bandwidth memory, is a faster and more expensive type of memory used in AI chips and high-performance data centers.

This last type of memory is where AI is changing the market. Artificial intelligence accelerators in Data centers It relies on HBM because it provides the chips with fast access to data while training and running large AI models. As demand for AI rises, memory makers have more reasons to prioritize data center parts over the cheaper parts used in everyday consumer electronics.

PC makers and chip nerds aren’t the only ones who will be feeling RAMageddon. It can affect the price of the phone The laptop your child needs for school And the graphics card you were hoping to buy without spending several hundred dollars more than expected.

Why are AI data centers eating up the world’s memory?

The memory chip market is mainly dominated by a small group of companies SamsungAnd SK Hynix and Micron, also known as the Big Three. before Artificial intelligence boomThese companies supplied vast amounts of DRAM and NAND to computers, phones, game consoles, and servers. Artificial intelligence has changed mathematics.

Gitch ObraniResearch Director for IDC “There’s a lot of memory,” Worldwide Device Trackers tells CNET. “It’s more a matter of allocation.”

HBM is more valuable than standard consumer memory because AI companies need it to run expensive accelerators e.g ChatGPT, twin And others Great models. As a result, manufacturers have more incentive to prioritize HBM and server products over lower-margin chips for consumer devices.

“The margins on memory that goes into data centers tend to be much higher,” Obrani says. “That’s why we’re seeing more memory allocated to those companies, which doesn’t leave enough capacity for companies that make (consumer) devices.”

Micron’s move shows how serious this shift is. In December, the company announced it would do so Closing the crucial consumer sectionthe brand that many PC builders know in the field of RAM and SSD upgrades. Micron said the growth of AI-driven data centers has led to increased demand for memory and storage, and that leaving the consumer business will help it support larger strategic customers.

This does not mean that consumer memory disappears overnight. But it means one of the largest memory companies is openly choosing higher-growth data center customers over retail consumer products.

How AI Server Demand Became Your Laptop’s Problem

The AI ​​memory crisis has been building for a while, but 2026 is when price volatility starts hitting everyday buyers harder. says Counterpoint Research DRAM prices jumped by 80 to 90% in the first quarter of this year compared to the previous quarter.

The shortage is already changing server purchasing habits. Some supply chains Reports Server makers say they ship systems with empty or partially filled memory slots to keep requests moving while customers wait to add more memory later. Some call this “Ghost RAM“, and shows how far the pressure reaches beyond laptops and smartphones.

This server-side pressure eventually reaches the consumer corridor. As the cost of memory rises, device makers may raise prices, cut memory or storage, delay the introduction of new models, or do some combination of all three.

“Ultimately, prices go up for consumers, whether they like it or not,” Obrani says. “It’s a combination of fewer budget options, lower specifications, and sometimes having to increase the price.”

It’s almost like an AI tax. You may never use a file chatbot On your laptop, but the AI ​​boom could still impact the cost of that laptop.

Budget PCs could disappear

RAMageddon may hit budget-conscious buyers harder. According to industry analyst Gartner, memory is expected to replace 23% of the cost of building a computer in 2026, up from 16% in 2025. That may not sound exciting, but low-cost laptops operate on razor-thin profit margins. When memory takes up a larger portion of the build cost, manufacturers have less room to offer inexpensive machines.

“Very low-cost options in the PC market are disappearing,” Obrani says, citing Chromebooks as an example. “Where Chromebooks used to cost $200, $300, maybe $400, but now because RAM is so expensive, vendors don’t want to make Chromebooks anymore, or they’re making fewer Chromebooks.”

Gartner also predicted that A PC for under $500 This segment will disappear by 2028. A laptop that used to cost $399 or $499, be less capable, or both may become harder to find.

Instead of refreshing entry-level lines, companies may focus on premium laptops where they can protect profit margins. That means fewer good, cheap options and more pressure on consumers to spend $800 or more.

Companies may extend their laptop replacement cycles as well. Instead of replacing employees’ computers every three or four years, IT departments might keep older machines longer and only upgrade workers who need more power. This could boost demand for It has been refurbished Laptops, used parts and memory upgrades.

Check memory before purchase

You know how your favorite bag of potato chips stays at the same price but looks half empty? We see the same thing Shrinkage in laptops. To keep a PC near the $499 price tag, manufacturers may cut costs in places most shoppers don’t check first.

The laptop line that moved to 16GB as the base configuration can slide back to 8GB. An update to the tablet could keep the price the same while dropping the RAM. The phone maker could reserve higher memory configurations for premium models while making the base version less future-proof.

This does not always mean that the device is bad. But this means you’ll need to check how much memory it has, rather than assuming the new model is automatically better than last year’s version.

AI-powered computers make the problem even stranger

Here comes the ironic point: As companies race to add AI features to computers, they are pushing a new category of AI Computers powered by artificial intelligence. But these AI features require more memory to function properly. Microsoft Copilot Plus computers It requires at least 16GB of RAM, while Apple has also pushed newer Macs towards 16GB as a baseline for Apple intelligence.

So, the moment memory becomes more expensive, the industry tries to sell you computers that need more of it. Rising prices for AI-powered PCs may slow adoption because shoppers may be reluctant to upgrade.

“Even before RAMageddon, personal computers with artificial intelligence were not performing as well as everyone thought,” Obrani says, adding that RAMageddon made that much worse. “So we’re now seeing fewer AI-powered PCs being shipped than anyone had previously expected.”

The AI ​​label may not be the biggest draw anyway. Many people who buy these devices do so “because they have a lot of RAM and storage, not because they have AI capabilities,” Obrani says.

Should you buy now or wait?

If your laptop or phone is working fine, No panic buying Any new technology. But if you’re already planning to upgrade this year, waiting may not save you money. In this market, last year’s model may become a luxury you can’t afford to ignore.

Gartner calls this “memflation,” or memory price inflation, and estimates that annual DRAM prices will rise 125% in 2026, while NAND flash prices will rise 234%.

Ubrani advises holding onto your device for as long as possible or getting the most out of it. “Now is a good time to consider alternatives, such as purchasing a used device or a refurbished device.”

Gartner a report He also notes that significant relief from rising memory prices may not arrive until late 2027. IDC extends its forecast to 2028. “Prices won’t come down again until at least 2028, and even then, we don’t think they’ll come down significantly,” Obrani says. “If you desperately need a device, the sooner you buy it, the better.”

Even as manufacturers expand production, they still have to decide how much capacity goes to HBM, server memory, and consumer DRAM, which means everyday devices may not get relief right away.

The biggest issue you’ll face is the change in hardware you get for the price. While 8GB of memory was enough for a basic PC, it likely wouldn’t hold up as well for newer software and AI features. Buying a laptop in late 2024 or early 2025 with 16GB of RAM might be better than buying a laptop in 2026 with 8GB and a higher price.

For most people, The floor should be 16 GB For a laptop you plan to keep for several years. For gaming, creative work, or local AI features, 32GB may be better. The amount of memory you get is a much better indicator of how long your device will last than any brand of AI you see on the box.

Tip: Don’t let the shiny “new” label fool you.