As Memory Chip Prices Soar On Relentless AI Demand, Consumer Electronics Makers Feel The Squeeze: Chip Stocks Soar

The unrelenting demand from AI data centers has led to a dramatic surge in memory chip prices, taking a toll on the sales and margins of leading consumer electronics makers.

Memory Chip Prices Surge

With global AI capex projected to reach between $5 trillion and $8 trillion by 2030, the memory chip supply is increasingly feeling the strain.

The world’s leading memory chip manufacturers, Samsung Electronics Co. Ltd. (OTC:SSNLF), SK Hynix Inc. (OTC:HXSCL) and Micron Technology Inc. (NASDAQ:MU) are struggling to keep up with the demand despite soaring prices, and fresh capex plans to shore up supply.

According to Counterpoint Research, the memory market has entered a “hyper-bull” phase, with prices expected to surge another 40% to 50% during the first quarter of 2026, following a similar uptick during the fourth quarter of 2025.

A 64GB RDIMM or Registered Dual In-Line Memory Module, which used to cost $255 during the third-quarter of 2025, is expected to reach $700 by March 2026, with $1,000 well within sight.

Electronics Demand Expected To Fall Amid Rising Prices

As a result, consumer electronics makers such as Dell Technologies Inc. (NASDAQ:DELL), Lenovo Group Ltd. (OTC:LNVGY), HP Inc. (NYSE:HPQ), Xiaomi Corp. (OTC:XIACF) and even Apple Inc. (NASDAQ:AAPL), are facing a difficult balancing act of having to balance margins, as well as high prices that could lead to lower demand from consumers.

According to research firm IDC, the average selling price of smartphones globally could rise between 3% to 5%, while the market itself could contract by 5.2% in 2026.

The PC segment isn’t faring any better, with the only tailwind being the Microsoft Windows 10 end-of-life refresh cycle, which can help keep demand high even with high prices.

Leading consumer electronics stocks have been hit hard in recent months, witnessing steep declines as a result of these supply-side constraints.

Memory Chip Stocks Rally

With unrelenting demand and soaring prices, leading memory chip manufacturers have seen their stocks soar over the past couple of months.

The VanEck Semiconductor ETF, which tracks leading semiconductor and memory stocks, was up 2.96% on Wednesday, closing at $401.93, and is up 0.90% overnight. The fund scores high on Momentum in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms.

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