Consumers planning to buy laptops, smartphones, gaming PCs or other electronics may soon face significantly higher prices. A new report from investment firm Jefferies warns that memory chip prices could rise sharply through the rest of 2026 and continue climbing in 2027, with meaningful relief unlikely before 2028. The forecast highlights how the global artificial intelligence boom is reshaping the semiconductor industry and creating supply shortages across the technology sector.
Memory Prices Expected to Rise Dramatically
According to Jefferies’ analysis, DRAM and NAND memory prices are projected to increase by 40% to 50% during the third quarter of 2026 compared to the current quarter. This could be followed by another 30% to 40% increase in the fourth quarter, creating one of the most significant memory price surges in recent years. Analysts further estimate that memory prices could rise by another 40% to 45% year-on-year during 2027.
The report suggests that ongoing supply constraints and relentless demand from AI infrastructure providers are the primary reasons behind the expected price increases.
AI Data Centres Are Consuming Most of the Supply
The explosive growth of artificial intelligence has created unprecedented demand for high-performance memory chips. Cloud providers and AI companies are reportedly securing large portions of global memory production through long-term contracts, leaving less supply available for consumer electronics manufacturers.
Industry estimates indicate that data centres could consume up to 70% of high-end memory production, as companies continue investing billions of dollars in AI infrastructure, training large language models and expanding cloud computing capabilities.
As a result, manufacturers of laptops, smartphones, gaming consoles and enterprise hardware are facing increasing challenges in securing adequate memory supplies at affordable prices.
Higher Device Prices May Be Inevitable
The impact of rising memory costs is already becoming visible across the technology industry. Several manufacturers have warned about increasing component costs, while some companies have begun raising prices on finished products.
Industry experts believe consumers could see price increases across a wide range of products, including smartphones, personal computers, graphics cards, servers and storage devices. Companies may either pass the higher costs on to customers or accept lower profit margins to remain competitive.
Relief May Not Arrive Until 2028
While major memory manufacturers such as Samsung, SK Hynix and Micron are investing in additional production capacity, building new fabrication facilities takes years. Jefferies believes meaningful supply improvements may not arrive until 2028, when new manufacturing capacity begins entering the market. Even then, the expected price correction could be limited to around 15% to 20%, meaning memory prices may remain substantially higher than previous levels.
Some industry executives have even suggested that elevated memory prices could become the industry’s “new normal” for the remainder of the decade.
What It Means for Consumers
For consumers considering a technology upgrade, the report serves as a warning that today’s prices may look relatively attractive compared to what could arrive later this year. While forecasts can change based on market conditions, the growing influence of AI infrastructure spending is clearly having a major impact on global semiconductor supply chains.
Summary
Jefferies has warned that memory chip prices could rise by up to 50% in Q3 2026 and another 40% in Q4, driven by soaring AI-related demand and ongoing supply shortages. The increases are expected to push up prices of laptops, smartphones and other electronics. Analysts believe meaningful relief may not arrive until 2028, even as major chipmakers expand production capacity.
