DRAM Shortage Intensifies, Prices Up 75% as AI Datacenters Drive Semiconductor Disruption

DRAM shortages are intensifying, with prices surging 75% in the last month and scrambling supply chains. Tech leaders including Tesla (TSLA-US), Apple (AAPL-US), and AMD (GOOGL-US) warn production is being throttled as AI datacenters spike demand for memory chips. NVIDIA’s GPUs, requiring high-capacity memory, are driving allocation struggles, while Alphabet (GOOGL-US) and Amazon (AMZN-US) plan record $1.85T and $2.0T capital expenditures. The strain is rippling across products, with Sony considering a PlayStation 6 release in 2028 and Nintendo weighing a price hike. Notebook and smartphone makers are shortening supplier review cycles and cutting 2026 output, including OPPO potentially downscaling by 20%. Cisco (CSCO-US) and Qualcomm (QCOM-US) report softer margins, while ARM (ARM-US) warns of further headwinds. Counterpoint Research estimatesDRAM’s cost share in low-end phones could reach 30% by year-end. Analysts say the industry is entering an AI-driven super-cycle that may end the traditional boom-bust rhythm, favoring early investors with deep capital and strategic positioning.