Memory Chip Prices Surge as AI Boom Fuels Record Semiconductor Revenues
Gartner forecasts semiconductor sales will nearly double to $1.6 trillion in 2026, driven largely by a sharp rise in DRAM and NAND prices linked to AI infrastructure demand.
According to Gartner, the semiconductor industry is set to generate $1.6 trillion in 2026, almost twice the $809 billion recorded in 2025, with memory chips accounting for the bulk of the increase. DRAM revenue is projected to rise 246.6 percent and NAND flash 371.9 percent, moving memory ahead of non-memory components in total sales for the first time. The surge is tied to a boom in AI infrastructure, prompting manufacturers like Samsung, Micron and SK Hynix to focus on high-performance server and GPU memory, leaving fewer wafers for everyday devices and driving up prices.
Recent reports show PC and smartphone buyers facing higher costs, with the phone market expected to shrink 15 percent this year. Suppliers have also secured multi-year deals that cement historically high prices through 2028. Analyst Ben Lee notes that AI-driven demand is reshaping the semiconductor value chain, suggesting the price environment will remain strong for the foreseeable future.
Why it matters
Rising memory costs could increase prices for consumer electronics and affect tech-dependent businesses worldwide.
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