Chinese memory vendor panics as RAM prices dip

A Chinese PC parts vendor who stockpiled DRAM during high prices expressed despair after recent price drops. In a video from a warehouse filled with memory chips, the vendor questioned if prices might rise again. The declines follow AI-driven shortages but are not yet widespread.

A memory vendor in China showcased a massive warehouse of DRAM chips and parts in a video, lamenting the sudden drop in RAM prices. Translated from the clip, the vendor said: “Brothers, memory [prices] have taken a massive dive. We’re stuck with it, stuck with it. We’re doomed, we’re screwed. Is there still any chance for the price to go back up?” The video, shared by China Pulse on April 1, 2026, highlights concerns among speculators who bought heavily during the AI-fueled surge in demand from hyperscalers for datacenters and PCs. As first spotted by Wccftech, the footage underscores fears of financial losses for hoarders as supply pressures ease slightly. Some Corsair memory modules on Amazon fell from around $490 to $380, with other sticks seeing smaller reductions. These dips do not indicate the end of the broader RAM shortage caused by artificial intelligence needs. Experts link the changes partly to Google’s TurboQuant compression algorithm, which aims to cut memory use in AI workflows. While some AI specialists have questioned the technology’s claims, it has drawn attention from companies wary of over-reliance on high-cost memory. Hoarders now face pressure to sell excess stock, potentially accelerating further declines.

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HP executives highlight surging RAM costs to 35% of PC bill of materials due to AI demand during earnings call.
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HP reports RAM costs now at 35 percent of PC bill of materials

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During its Q1 2026 earnings call, HP executives revealed that RAM now represents 35 percent of the company's PC costs, up from 15 to 18 percent last quarter. The surge is attributed to AI-driven demand straining memory supplies. HP anticipates further price volatility and plans to raise PC prices in response.

Apple CEO Tim Cook stated that high memory costs will significantly impact the company's business in coming quarters. He highlighted supply constraints during the latest earnings call despite strong revenue growth. The issue stems from skyrocketing RAM prices driven by AI data center demand.

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A Xiaomi executive warned on an earnings call that memory prices surging 'beyond imagination' are drawing smartphone makers into a long-term price-raising cycle, after which some players may suffer significant losses or even closure. The company reported a 27 percent year-on-year drop in fourth-quarter net profit.

Chinese memory module makers are accelerating production of consumer and enterprise products powered by domestic DDR5 chips. Breakthroughs from ChangXin Memory Technologies are moving through the supply chain. Firms like Powev have started mass production of server memories.

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Advanced Micro Devices posted first-quarter results that topped expectations, with revenue climbing 38 percent on robust server chip sales tied to artificial intelligence.

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