The Great RAM Recession

A massive shortage of RAM (Random Access Memory) is underway, and the primary driver is the insatiable appetite of the Artificial Intelligence industry and technology giants scrambling for global AI superiority. This "RAM Recession" is already leading to significant price hikes and supply chain disruptions that are projected to persist, and even worsen, through 2027, and potentially into 2028.

The AI Memory Appetite

At the heart of the issue is the sheer scale of memory required by modern AI systems. Companies at the forefront of AI development (Microsoft, Google, and Amazon) are purchasing RAM in unprecedented quantities from leading manufacturers like Micron, Kingston, and Hynix, effectively cornering the market. To put this into perspective, a single, high-end AI server is now being equipped with an amount of RAM that a typical system integrator would use across ALL of their client builds in an entire year. This staggering demand from a single sector is leaving little for anyone else.

The Consequences Are Already Here

The consequences are already being felt across the technology industry and is already impacting consumers. The market is experiencing severe shortages, and prices for memory modules have skyrocketed, increasing by as much as six-fold. For businesses and individuals alike, this means the cost of building or upgrading computers is climbing steeply, with availability becoming a significant hurdle.

A Long-Term Crisis

This is not a temporary spike. Industry analysts warn that this is only the beginning of a long-term trend. As AI models become more complex and data-intensive, their memory requirements will continue to grow exponentially. The supply chain is struggling to keep up, and it is expected that these shortages and high prices will be the new normal for at least the next three years. The great RAM Recession has begun, and its effects will be felt for years to come.