How and When the Memory Chip Shortage Will End

The memory chip shortage is driven by massive AI demand for high-bandwidth memory (HBM), causing DRAM prices to surge 80-90% this quarter. While major AI companies have secured supply through 2028, other industries face scarce supply and inflated prices that won't normalize for years.

• →DRAM prices have risen 80-90% this quarter due to AI demand for HBM memory chips used in GPU accelerators.
• →HBM costs three times more than regular memory and constitutes 50% or more of packaged GPU costs.
• →Major AI hardware companies have secured chip supplies through 2028, leaving other industries scrambling.
• →The shortage stems from cyclical industry patterns combined with unprecedented AI infrastructure buildout scale.
• →Memory companies were hesitant to expand capacity after 2022-2023 price crashes, creating current supply constraints.