Adata CEO: AI demand may trigger PC RAM and SSD shortages
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Key points
- AI data centers are outbidding the consumer hardware market for base memory parts, while manufacturers are hiking prices.
- As the supply of DRAM and NAND reaches record-low levels, retailers are likely to expect shortages of RAM and SSDs, respectively.
- DRAM supercycle is expected to last at least until 2027, while DDR5 RAM kits have already increased in price.
AI data centers are now outbidding the PC market for core hardware components. Adata chairman Simon Chen says demand is draining DRAM for HBM, NAND for SSDs, and even HDDs, cutting upstream inventories to roughly two to three weeks. As reported earlier, DRAM upcycle is projected through 2027, while consumer RAM prices are already on the rise.
Adata’s CEO, Simon Chen, says the competition for hardware parts has shifted from module makers to cloud and AI buyers, creating simultaneous shortages across DRAM, NAND, and even HDDs that he has never seen before.
Upstream stock has fallen to roughly two to three weeks (versus a more typical two to three months), and Simon has told its sales teams to “sell sparingly” and prioritize long-term customers. HDD scarcity may also nudge some consumers toward SSDs, tightening supply further.
Chen expects tight supply and higher contract pricing to persist into 2026, with DDR4’s production wind-down compounding pressure while capacity is steered toward server demand. Foundry allocation now prioritizes AI servers, followed by general servers, with everything else at the back. This situation is increasing the risk of empty retail shelves and higher prices for consumer RAM and SSDs over the next several quarters.
Rising hardware prices
As noted earlier and reported in our other news articles, hardware prices are rising as AI demand absorbs inventories of core hardware components, while major memory manufacturers are hiking prices. At the same time, analysts predicted a DRAM supercycle at least until 2027. We continue to cover the biggest deals in AI hardware:
- Broadcom and OpenAI deal.
- Nvidia and xAI investment deal.
- Nvidia and Intel investment.
- AMD and OpenAI deal.
- Nvidia and OpenAI investment deal.
Our exclusive analysis shows DDR5 RAM kits’ monthly median price is up to 15% in October (compared to September) at the time of study (October 10) and 20% as of October 15. Over the single last week, 2×32GB DDR5 RAM kits rose 9%. We’re currently expanding the tracking to other PC hardware and will publish weekly updates.
Adata Technology is a Taiwan-based memory and storage manufacturer founded in 2001 by Simon Chen, who still serves as its chairman. The company sells DRAM modules and SSDs for consumer, industrial, and gaming markets under the Adata and XPG brands.
