Micron Warns of Further DRAM and NAND Price Rise, Blames AI

Micron has officially announced a price hike for its memory, citing growing demand for DRAM and NAND flash. The upward trend is expected to continue until 2026. The reason is simple: artificial intelligence (AI), data centers, and consumer electronics are increasingly demanding high-performance solutions, but supply is not keeping up with demand.

Image source: Micron, tomshardware.com

In its message to partners, Micron emphasized that the key factor in revising its pricing policy was “unpredictable demand in various segments.” In particular, the company notes that AI applications are rapidly evolving, which means it is necessary to maintain the competitiveness of the product line. Micron also recommended that partners plan their purchases in advance to avoid shortages and supply disruptions.

One of the main drivers of price growth is the growing demand for high-speed HBM (High Bandwidth Memory), which is critical for AI accelerators and next-generation GPUs. As Nvidia, AMD, and Intel advance their AI technologies, the need for fast, energy-efficient memory is only increasing. Despite efforts by Micron and its competitors to ramp up production, supply still lags behind demand, further fueling price growth.

To address this challenge, Micron recently announced a new $7 billion facility in Singapore to manufacture HBM memory, scheduled to launch in 2026. The plan also includes advanced solutions such as the HBM3E, HBM4, and HBM4E, which experts say will help the company strengthen its position in the rapidly growing segment.

Impact on the consumer electronics market
Beyond AI and data centers, consumer electronics are also seeing a revival. PC and smartphone makers have begun to ramp up memory orders in preparation for new product releases in late 2025 and early 2026. This is another argument for raising prices — demand remains stably high, and the trend looks set to continue.

With Micron leading the way in announcing price increases, it’s now up to competitors and customers to respond. If current demand levels continue, the industry could see a sustained price hike that could impact not only enterprise data centers but also consumer devices, from gaming PCs to smartphones.