Two major factors are changing the computing landscape as the tech sector gets ready to gather in Las Vegas for CES 2026, which begins on January 6: an unprecedented race to construct AI infrastructure and a memory chip shortage that is pushing prices to all-time highs.
On January 5, Nvidia CEO Jensen Huang and AMD CEO Lisa Su will give consecutive keynote addresses, setting the stage for an event that is anticipated to highlight how artificial intelligence is revolutionizing consumer electronics, data centers, and the worldwide semiconductor supply chain.
Memory Chip Prices Double Amid AI Boom
As IT giants prioritize the production of high-bandwidth memory (HBM) for AI accelerators above traditional DRAM, memory chip producers are confronted with a severe supply issue. S&P Global estimates that DRAM costs for new contracts could increase by 70% to 100% in 2026 compared to 2025 prices. According to estimates provided by Network World, the cost of DDR5 64GB RDIMM modules used in enterprise data centers could double by the end of 2026 compared to early 2025.
In spot markets, the price increase is already noticeable. According to the general manager of Team Group, a 16Gb DDR5 chip that averaged $6.84 in September increased to $27.20 on December 1, as reported by Tom’s Hardware. Samsung has increased the cost of 32GB DDR5 modules by 60%, from $149 in September to $239. During its October results call, SK Hynix stated that it had sold out of its HBM, DRAM, and NAND capacity through 2026.
The scarcity results from chipmakers shifting production capacity to HBM3E memory, which costs three times as much on the wafer as regular DRAM but charges premium prices from AI data center customers. “The memory market is at an unprecedented inflection point, with demand significantly surpassing supply,” according to an IDC analyst. According to reports, SK Hynix and Samsung raised the price of the HBM3E by 20% for deliveries in 2026.
Big Tech’s Billion-Dollar AI Data Center Race
The memory shortage is a result of significant capital investments in AI infrastructure. According to Goldman Sachs Research, Wall Street analysts now predict that hyperscaler corporations will spend $527 billion on capital expenditures in 2026, up from $465 billion at the beginning of the third quarter 2025 earnings season. According to Gartner, cloud providers’ expenditures in AI-optimized data centers and hardware like GPUs are expected to propel global AI spending to surpass $2 trillion in 2026.
According to McKinsey, in order to meet the expectations of AI, businesses globally will need to invest $6.7 trillion in additional data center capacity between 2025 and 2030. According to BofA Research, Meta and Oracle issued $75 billion in bonds and loans in September and October 2025 alone to finance AI data center buildouts, which is more than twice the yearly average over the previous ten years.
AI Strategy: CES Keynote Addresses
While significant chip announcements are usually saved for the company’s GTC conference in March, Huang is anticipated to present Nvidia’s vision for AI data centers, robotics, and physical AI applications at CES. AMD’s Su will showcase the company’s lineup, which includes Ryzen CPUs for AI PCs and gaming, AMD EPYC processors for data centers, and AMD Instinct GPUs for AI acceleration. AMD is expected to introduce new Ryzen 9000X3D desktop processors and Ryzen AI 400 series mobile chips with Zen 5 architecture, according to industry analysts.
Both businesses aim to establish themselves as complete platform providers for AI development, so the battle goes beyond chips to software ecosystems.
Widespread Effects On Electronic Consumers
The cost of consumer devices is already being impacted by the memory shortage. The Financial Times estimates that by 2026, the cost of gadgets, such as laptops, cellphones, and appliances, may rise by 5% to 20%. According to TrendForce, memory is predicted to make up over 20% of laptop manufacturing expenses this year, up from the prior range of 10% to 18%. According to IDC, “the conclusion of an era characterized by inexpensive, plentiful memory and storage” might result in a 5.2% fall in the worldwide smartphone market and an 8.9% decline in the PC category by 2026.
According to industry analysts, supply shortages will likely continue into 2026 and potentially into 2027 or 2028 when additional production capacity is brought online.