AI is driving up costs: Tech companies are buying up memory chips, leaving fewer for phones and laptops.
Prices likely rising into 2026: Shortages won’t ease quickly, so expect higher device prices.
Buy smart now: Shop earlier, consider last year’s models, and track prices to avoid overpaying.
The rapid rise of artificial intelligence isn’t just changing tech, it’s also starting to hit your wallet. A new Bloomberg analysis shows that surging demand for AI is creating a major shortage of memory chips, a key component inside of our smartphones, laptops, and gaming consoles.
Right now, tech giants like Amazon, Google, Microsoft, and Meta are pouring hundreds of billions into AI data centers. These systems require massive amounts of memory, including high-speed chips designed specifically for AI workloads. The problem? There simply aren’t enough to go around.
That’s pushing everyday consumer devices to the back of the line.
And this isn’t a quick fix. Building new chip factories takes years, and manufacturers are being cautious about expanding too fast. This means the supply shortage, and subsequent higher prices, could stick around all of 2026 and beyond.
What consumers can do now
- Buy sooner rather than later: Prices are likely to rise in the coming months. If you’ve been thinking about replacing an old phone or laptop, now would be a good time to start researching and price comparing your various options.
- Skip the latest model: Last year’s devices can often be bought at a steep discount, typically in the 30-40% off range. Unless you’re looking for specific features, they are nearly identical in terms of performance for the average user.
- Track prices before you buy: Use price tracking tools like CamelCamelCamel or Keepa to spot price spikes on laptops and tablets so you don’t get fooled by fake sales. There’s a good chance rising chip costs will translate to “sales” that aren’t always “real deals” anymore.
- Prioritize RAM and storage over brand-new models: With memory costs rising quickly, it’s smart to figure out now how much RAM you’ll potentially need and lock in higher RAM now. Not only will you extend your device’s lifespan, but you’ll avoid a costly upgrade later.
- Time your purchase around major sales windows: Back-to-school sales, Amazon Prime events, and Black Friday deals may be your best shot to offset AI-driven price increases before they fully hit store shelves.