DRAM and NAND flash prices surge up to 98% in a single quarter as AI chip demand strains memory supply.

AI's insatiable appetite for high-bandwidth memory is starving the conventional chip market, sending costs soaring for everything from laptops to data centers.

Remember when a 1 TB SSD cost about $45? That was late 2025. The same drive now runs closer to $90.

Conventional DRAM contract prices surged 90-98% quarter-over-quarter in Q1 2026, according to TrendForce. The original forecast had called for a 55-60% increase. The actual numbers blew past even the most bullish projections.

Major memory manufacturers—Samsung, SK Hynix, and Micron—have been aggressively shifting their production capacity toward high-bandwidth memory, the specialized DRAM that powers AI accelerators in data centers. When fabrication lines are redirected to produce HBM, those same lines cannot simultaneously produce the conventional DRAM and NAND flash that goes into laptops, smartphones, and consumer SSDs.

NAND flash didn't escape the carnage. Contract prices jumped 55-100% quarter-over-quarter in Q1 2026, with Samsung reportedly hitting the peak end of that range.

TrendForce has revised its projections upward, forecasting NAND flash prices could climb an additional 70-75% in Q2. DRAM is expected to see further increases of 58-75%. Suppliers are reporting sold-out capacities across conventional memory product lines, and analysts expect the supply squeeze to persist through 2027 as manufacturers continue prioritizing HBM.

The squeeze is rippling across consumer and industrial markets. Smartphone manufacturers face pressure, as memory typically represents a significant portion of a phone's bill of materials. Laptop and PC makers are in the same boat—the $300 laptop might become the $400 laptop, or the specs at that price point might quietly worsen.

Consumer SSDs tell the most visible story. A product category that had been on a long-term deflationary trajectory has suddenly reversed course. The jump from roughly $45 to $90 for a 1 TB drive is something everyday consumers can see and feel in their wallets.

Companies that locked in long-term memory supply contracts before prices spiked have a meaningful cost advantage over competitors buying on the spot market.