If you've priced out a RAM upgrade lately and assumed the listing was a mistake, it wasn't. A 32GB DDR5 kit that sold for around $60–90 in early 2025 now commonly runs $150–300, and in some cases three to four times what it cost a year ago. DDR4 hasn't escaped either. This isn't a temporary blip or a single retailer gouging — it's a genuine, structural shortage, and it's worth understanding before you spend.
Here's what's actually going on, in plain English, and what it means for your next build or upgrade.
The short answer: AI ate the memory supply
RAM got expensive because the same factories that make your PC's memory have pivoted to making a different, far more profitable kind of memory for AI data centres.
A handful of companies — Samsung, SK Hynix, and Micron — control over 95% of the world's DRAM production. In 2025, faced with explosive demand from AI companies, they made a business decision: shift manufacturing capacity toward High Bandwidth Memory (HBM), the specialised memory that powers the GPU clusters behind AI models. The profit margins on HBM are reportedly five to ten times higher than on the standard memory that goes in consumer PCs. From a business standpoint, it's an easy call — and a brutal one for everyone buying a gaming PC.
Why a little AI demand caused such a big price jump
Two things make this worse than a normal supply crunch.
The "die penalty." Manufacturing one bit of HBM takes roughly three times the wafer space of one bit of standard DDR5. Total production is capped by factory and cleanroom capacity, so every wafer shifted to HBM removes about three wafers' worth of consumer memory from the global pool. A relatively modest pivot toward AI memory drains a disproportionate amount of consumer supply.
The scale of AI demand. Reporting suggests AI will consume around 20% of total DRAM production in 2026, and that figure could climb as data-centre buildout continues. AI "hyperscalers" are also locking in long-term contracts at premium prices, effectively buying up supply before it ever reaches store shelves.
The result: even with factories running flat out, the memory left over for PCs, laptops, and phones has shrunk while demand has stayed high. Prices go where you'd expect.
DDR4 isn't the escape hatch anymore
The old advice — "just buy cheaper DDR4" — doesn't work this time. The shortage doesn't discriminate by generation. DDR4 kits that went for $60–90 have climbed to $150–180, partly because manufacturers are winding down older production lines entirely. Both generations got more expensive at once.
This isn't just a PC problem
The squeeze is rippling across the whole tech industry. Major PC makers like Dell have signalled price increases of hundreds of dollars on some machines. Smartphone makers are feeling it too — Xiaomi's finance chief publicly warned that rising memory costs would push phone prices up, with some manufacturers even re-engineering devices to use less RAM. If a device has memory in it, this shortage touches it.
Will RAM prices come back down?
Not soon, and probably not in a way that helps a 2026 upgrade. Industry analysts estimate combined memory supply will grow only around 16–17% in 2026 — below both historical norms and the pace of AI-driven demand. New factories from the big three are planned or under construction, but meaningful output from some of them isn't expected until 2028, and much of the new advanced capacity is aimed at HBM for AI rather than consumer DDR5.
There are occasional small dips — a kit here or there shaving a few percent — but those look like plateau noise, not the start of a real downtrend. The honest read from people in the industry is that this is a structural reallocation of memory toward AI, and relief isn't likely before 2027 at the earliest.
So should you buy RAM now or wait?
A few practical takeaways given all of the above:
If you need RAM for a build or upgrade soon, buy it now. Multiple industry voices are openly telling people not to wait, because the situation is expected to get worse before it gets better. Waiting for a price drop that may be a year or more away isn't a great bet.
Buy only what you actually need. This is a bad time to over-spec "to be safe." For most gaming in 2026, 16GB is still workable and 32GB is the comfortable sweet spot — there's little reason to pay today's prices for 64GB unless your workload genuinely demands it.
Consider the used market. With new kits so inflated, second-hand RAM from a reputable seller is more attractive than usual. Just verify compatibility with your motherboard (DDR4 vs DDR5 is not interchangeable) and the speeds your platform supports.
Factor it into the whole-build maths. If you're choosing between building and buying pre-built right now, remember that pre-built makers are raising prices too. Price out both before deciding.
Frequently asked questions
Why did RAM prices suddenly go up in 2026?
Memory manufacturers shifted production toward high-margin HBM for AI data centres, shrinking the supply of standard DDR5 and DDR4 for consumers while AI demand kept climbing.
Is the RAM shortage temporary?
No. It's a structural shift in how memory production is allocated, not a short-term spike. Most analysis points to limited relief before 2027.
Should I buy DDR4 instead of DDR5 to save money?
It won't help much — DDR4 prices have risen sharply too, and older production is being phased out. Buy whichever your motherboard actually supports.
How much RAM do I need for gaming in 2026?
16GB still handles most games; 32GB is the comfortable target for gaming plus multitasking. Paying current prices for more than that rarely makes sense for a pure gaming machine.
Will building a PC get cheaper if I wait?
Possibly eventually, but not reliably in 2026 — and memory may keep climbing. If you need the machine now, waiting is a gamble.
Planning an upgrade and not sure what to prioritise with prices like these? Ask in the comments and we'll help you spend wisely.