Memory makers mint megabucks while buyers beg for mercy

Memory manufacturers reap hefty profits while consumers grapple with soaring costs, according to industry insights. DRAM revenue surged 369 percent year-over-year in Q3 2026, reaching nearly $200 billion, nearly five times its level from a year ago. Despite a modest 4 percent rise in bit shipments, the surge in demand for datacenter capacity and AI accelerators has transformed memory into a valuable, scarce resource. Buyers are competing for supply rather than negotiating prices, leading to continuing price hikes.

As AI infrastructure grows, server memory demand has skyrocketed, prompting manufacturers to prioritize more lucrative products over consumer devices like PCs and smartphones. This shift has resulted in a sharp increase in memory costs, driving up prices for laptops and desktops by double-digit percentages in Europe, causing a decline in PC shipments due to supply shortages and high expenses.

Similarly, smartphone shipments have dropped by at least 20 percent as rising memory costs force vendors to focus on high-end devices and abandon budget models.

Prices have begun to stabilize from the sharp increases seen earlier in the year, but average DRAM selling prices still stand at $1.90 per gigabit, driving revenue growth. Samsung led with a 38 percent share of DRAM revenue and forecasted a Q3 operating profit of $80 billion, up from $9 billion a year prior. SK hynix recorded a stronger sequential growth, recovering some lost market share, with a $62.8 billion profit and predicting memory shortages will persist until at least 2030.

Micron's DRAM revenue grew more slowly but its overall business remained strong, with a net profit of $37.7 billion in fiscal Q4, surpassing its second-quarter revenue of $23.8 billion.

Research suggests memory prices will remain high next year, with high-bandwidth memory prices catching up to commodity DRAM. Long-term agreements support current prices, but supply remains tight due to the delayed production of new fabs expected in 2028. While short-term results may vary among suppliers due to LTA terms, long-term trends indicate a continued upward trend, benefiting memory manufacturers with massive profits while burdening buyers with rising costs.