Memory makers mint megabucks while buyers beg for mercy

The memory industry is raking in record profits as buyers face increasing costs, according to Counterpoint Research. In Q3 2026, DRAM revenue hit nearly $200 billion, five times higher than a year ago, despite only a 4 percent increase in bit shipments. The surge in demand for datacenter capacity and AI accelerators has transformed memory from a commodity to a valuable scarce resource, driving up prices and outpacing supply.

AI infrastructure growth has fueled server memory demand, prompting manufacturers to prioritize more lucrative products and squeeze supplies for consumer devices like PCs and smartphones. This has resulted in higher memory costs, leading to increased prices for laptops and desktops across Europe, halting shipments and pushing consumers towards high-end models.

While price increases have slowed, average DRAM selling prices remain at $1.90 per gigabit, driving revenue growth. Samsung leads with 38 percent of DRAM revenue, forecasting $80 billion in company-wide operating profit for Q3. SK hynix reported stronger sequential growth, and Micron's wider business thrived despite slower DRAM revenue growth.

Memory shortages are expected to persist until at least 2030, with prices likely remaining high next year.