Fearful investors who thought that the artificial intelligence bubble would pop at the start of this week neglected the Consumer Electronics Show. On January 6 – 9, major technology companies like Nvidia (NVDA) and AMD (AMD) shared their comments on the AI expansion.
Unfortunately for consumers, the memory chip shortage hurt the buzz for the CES event. Memory price gained over threefold in just the last quarter. Micron (MU), Samsung (SSNLF), and SK Hynix are the main memory vendors. Their profits will soar this year thanks to the shortage. They plan to raise prices by at least 60% this year to maximize profits.
Micron’s business chief, Sumit Sadana, said that memory demand surged by more than the industry could handle. Memory supplies and capabilities are constrained. MU stock gained 21% to start this year and is up by more than double in the last year.
SK Hynix plans to take advantage of the boom in memory chips by considering a listing on the U.Ex. exchange. Demand for the entire 2026 year is fully booked.
What Happened
Chip makers cut sales of DDR5 memory to the PC market. They are reallocating output to HBM, which AI servers use. The yield is poor compared to DDR5 production, but it earns more profits for chip suppliers.
What’s Next
Watch out for smartphones and tablets facing price hikes. PC makers like HP Inc. (HPQ) and Dell Technologies (DELL) are in deep trouble if memory prices do not fall. Consumers will simply avoid a PC upgrade this year.
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