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AI memory is sold out, causing an unprecedented surge in prices

admin — Sat, 10 Jan 2026 22:32:07 +0000

Eugene Mymrin | Moment | Getty Images

All computing devices require a part called memory, or RAM, for short-term data storage, but this year, there won’t be enough of these essential components to meet worldwide demand.

That’s because companies like Nvidia, Advanced Micro Devices and Google need so much RAM for their artificial intelligence chips, and those companies are the first ones in line for the components.

Three primary memory vendors — Micron, SK Hynix and Samsung Electronics — make up nearly the entire RAM market, and their businesses are benefitting from the surge in demand.

“We have seen a very sharp, significant surge in demand for memory, and it has far outpaced our ability to supply that memory and, in our estimation, the supply capability of the whole memory industry,” Micron business chief Sumit Sadana told CNBC this week at the CES trade show in Las Vegas.

Micron’s stock is up 247% over the past year, and the company reported that net income nearly tripled in the most recent quarter. Samsung this week said that it expects its December quarter operating profit to nearly triple as well. Meanwhile, SK Hynix is considering a U.S. listing as its stock price in South Korea surges, and in October, the company said it had secured demand for its entire 2026 RAM production capacity.

Now, prices for memory are rising.

TrendForce, a Taipei-based researcher that closely covers the memory market, this week said it expects average DRAM memory prices to rise between 50% and 55% this quarter versus the fourth quarter of 2025. TrendForce analyst Tom Hsu told CNBC that type of increase for memory prices was “unprecedented.”

Three-to-one basis

Chipmakers like Nvidia surround the part of the chip that does the computation — the graphics processing unit, or GPU — with several blocks of a fast, specialized component called high-bandwidth memory, or HBM, Sadana said. HBM is often visible when chipmakers hold up their new chips. Micron supplies memory to both Nvidia and AMD, the two leading GPU makers.

Nvidia’s Rubin GPU, which recently entered production, comes with up to 288 gigabytes of next-generation HBM4 memory per chip. HBM is installed in eight visible blocks above and below the processor, and that GPU will be sold as part of single server rack called NVL72, which fittingly combines 72 of those GPUs into a single system. By comparison, smartphones typically come with 8 or 12GB of lower-powered DDR memory.

Nvidia founder and CEO Jensen Huang introduces the Rubin GPU and the Vera CPU as he speaks during Nvidia Live at CES 2026 ahead of the annual Consumer Electronics Show in Las Vegas, Nevada, on Jan. 5, 2026.

Patrick T. Fallon | AFP | Getty Images

But the HBM memory that AI chips need is much more demanding than the RAM used for consumers’ laptops and smartphones. HBM is designed for high-bandwidth specifications required by AI chips, and it’s produced in a complicated process where Micron stacks 12 to 16 layers of memory on a single chip, turning it into a “cube.”

When Micron makes one bit of HBM memory, it has to forgo making three bits of more conventional memory for other devices.

“As we increase HBM supply, it leaves less memory left over for the non-HBM portion of the market, because of this three-to-one basis,” Sadana said.

Hsu, the TrendForce analyst, said that memory makers are favoring server and HBM applications over other clients because there’s higher potential for growth in demand in that business and cloud service providers are less price-sensitive.

In December, Micron said it would discontinue a part of its business that aimed to provide memory for consumer PC builders so the company could save supply for AI chips and servers.

Some inside the tech industry are marveling at how much and how quickly the price of RAM for consumers has increased.

Dean Beeler, co-founder and tech chief at Juice Labs, said that a few months ago, he loaded up his computer with 256GB of RAM, the maximum amount that current consumer motherboards support. That cost him about $300 at the time.

“Who knew that would end up being ~$3,000 of RAM just a few months later,” he posted on Facebook on Monday.

‘Memory wall’

AI researchers started to see memory as a bottleneck just before OpenAI’s ChatGPT hit the market in late 2022, said Majestic Labs co-founder Sha Rabii, an entrepreneur who previously worked on silicon at Google and Meta.

Prior AI systems were designed for models like convolutional neural networks, which require less memory than large language models, or LLMs, that are popular today, Rabii said.

While AI chips themselves have been getting much faster, memory has not, he said, which leads to powerful GPUs waiting around to get the data needed to run LLMs.

“Your performance is limited by the amount of memory and the speed of the memory that you have, and if you keep adding more GPUs, it’s not a win,” Rabii said.

The AI industry refers to this as the “memory wall.”

Erik Isakson | Digitalvision | Getty Images

“The processor spends more time just twiddling its thumbs, waiting for data,” Micron’s Sadana said.

More and faster memory means that AI systems can run bigger models, serve more customers simultaneously and add “context windows” that allow chatbots and other LLMs to remember previous conversations with users, which adds a touch of personalization to the experience.

Majestic Labs is designing an AI system for inference with 128 terabytes of memory, or about 100 times more memory than some current AI systems, Rabii said, adding that the company plans to eschew HBM memory for lower-cost options. Rabii said the additional RAM and architecture support in the design will enable its computers to support significantly more users at the same time than other AI servers while using less power.

Sold out for 2026

Wall Street has been asking companies in the consumer electronics business, like Apple and Dell Technologies, how they will handle the memory shortage and if they might be forced to raise prices or cut margins. These days, memory accounts for about 20% of the hardware costs of a laptop, Hsu said. That’s up from between 10% and 18% in the first half of 2025.

In October, Apple finance chief Kevan Parekh told analysts that his company was seeing a “slight tailwind” on memory prices but he downplayed it as “nothing really to note there.”

But in November, Dell said it expected its cost basis for all of its products to go up as a result of the memory shortage. COO Jefferey Clarke told analysts that Dell planned to change its mix of configurations to minimize the price impacts, but he said the shortage will likely affect retail prices for devices.

“I don’t see how this will not make its way into the customer base,” Clarke said. “We’ll do everything we can to mitigate that.”

Even Nvidia, which has emerged as the biggest customer in the HBM market, is facing questions about its ravenous memory needs — in particular, about its consumer products.

At a press conference Tuesday at CES, Nvidia CEO Jensen Huang was asked if he was concerned that the company’s gaming customers might be resentful of AI technology because of rising game console and graphics cards prices that are being driven by the memory shortage.

Huang said Nvidia is a very large customer of memory and has long relationships with the companies in the space but that, ultimately, there would need to be more memory factories because the needs of AI are so high.

“Because our demand is so high, every factory, every HBM supplier, is gearing up, and they’re all doing great,” Huang said.

At most, Micron can only meet two-thirds of the medium-term memory requirements for some customers, Sadana said. But the company is currently building two big factories called fabs in Boise, Idaho, that will start producing memory in 2027 and 2028, he said. Micron is also going to break ground on a fab in the town of Clay, New York, that he said is expect to come online in 2030.

But for now, “we’re sold out for 2026,” Sadana said.

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Pro-Palestinian radicals causing chaos should be a wake-up call to not elect Mamdani for NYC Mayor

admin — Sun, 12 Oct 2025 02:30:02 +0000

Around 6 p.m. Tuesday, I witnessed pro-Palestinian radicals descend upon Midtown Manhattan to commemorate one of the darkest days in recent history: The Oct. 7, 2023, massacre of innocent Israelis by Hamas terrorists.

It was such a disgusting spectacle on so many levels: masked thugs parading up Sixth Avenue, chanting the antisemitic slogan “From the river to the sea” and “Israel does not exist,” terrorizing people as they left work.

Hundreds of protesters literally stopped traffic in the middle of rush hour so we could hear their warped version of history.

The demo should provide a wake-up call to the city’s political class including its business leaders ahead of next month’s mayoral election, which is set to bring even more appalling behavior.

The fact that they remain largely asleep makes the situation New Yorkers face all the more horrifying.

It must be noted that the protest necessitated a large police presence that diligently prevented an all-out riot given the volatile nature of the crowd.

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That night, I was scheduled to attend a concert at Carnegie Hall.

As I made my way uptown, dodging a series of near brawls between various factions of protesters, I struck up a conversation with a police officer and asked a question all New Yorkers should be asking themselves: “How is any of this legal?”

City Hall is currently occupied by an ex-cop named Eric Adams, though not for much longer.

He just dropped out of the upcoming mayoral race because his manifold ethical lapses made him unelectable even if he’s done a decent job reducing crime.

I say “decent” because the quality of life in this city remains abysmal; the subways remain unsafe; and homelessness rages on our streets.

The reason the cops allowed that disgustingly nihilistic Oct. 7 protest stems from Adams’ crazy interpretation of the state constitution’s guarantees for the right of assembly.

During the Giuliani years, you needed a permit and were relegated to designated areas.

When the leftist Bill de Blasio became mayor, the First Amendment and the state constitution’s speech protections meant anything goes, even if it means chanting “From the river to the sea” on Sixth Avenue.

Grim outlook

And it’s only going to get worse, which is something our city’s leadership class needs to understand — and fast.

Along with his ethical woes, Adams quit the campaign to consolidate support around a more moderate candidate for mayor and prevent the Israel-hating, avowed Marxist Zohran Mamdani from occupying City Hall after the Nov. 4 ballot.

This week, Adams will likely endorse for mayor his fellow “moderate,” former Gov. Andrew Cuomo, though it will likely make almost no impact — and not just because Cuomo brings his own baggage.

The race is a three-way competition with the beret-wearing Guardian Angels founder, Republican Curtis Sliwa, sucking up around 15% of the vote, according to the latest polling.

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That leaves Mamdani comfortably ahead in this increasingly leftist Democratic city, polling at 46% to Cuomo’s 33%.

You would think that with less than a month before Election Day, Cuomo and Sliwa would come out swinging against the kooky communist frontrunner.

They do throw some jabs at him, but their attacks feel strangely muted.

Where is their five-point plan to revive the economy while showing how a leftist like Mamdani will destroy what business is left through high taxes and defunding the police?

And why didn’t either come out and say that NYC’s latest death-cult protest — something an anti-Zionist like Mamdani undoubtedly celebrated — would never happen under their watch?

And where is the business community and its chief organizer, Kathy Wylde of the Partnership for New York City, screaming “Enough!”

They should be prodding Cuomo and Sliwa to get on the ball because of all that’s at stake.

This city has a long history of ethnic parades, of course.

They’re organized around pride like the one on Monday celebrating the great, though much maligned, explorer Christopher Columbus.

This was different.

Why are the cops allowing thugs to upend all forms of civility while they violently cheer wanton rape and murder?

“You’re going to have to ask the city about that,” the cop responded before we shook hands and parted ways.

Far left vision

Mamdani, of course, hasn’t been muted about his vision: business-destroying taxes, leftist views on policing and the rest.

But at least he’s willing to fight for what he believes in and, barring something unforeseen, he’s going to be our next mayor.

I managed to make my event at Carnegie Hall, a grand venue that speaks volumes about our great city, the wealth it created and the wealth creators who give back by funding the arts.

Still, I couldn’t help but think while mingling with all those bankers and lawyers in attendance — no doubt, all members of the Partnership for New York City — how little they understand what’s about to happen to Gotham — and their responsibility for allowing it to occur.

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Trump threatens furniture tariffs — causing Wayfair, Williams-Sonoma shares to plunge

admin — Sat, 23 Aug 2025 17:31:25 +0000

President Trump announced Friday that his administration is investigating imported furniture for potential tariffs, sending shares of major home goods companies tumbling in after-hours trading.

Trump said the probe would be wrapped up within 50 days, after which furniture imports would face duties at rates “yet to be determined.”

“This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union,” Trump posted on his Truth Social platform.

The tariff threat hammered stocks of companies heavily reliant on foreign manufacturing. Wayfair, RH and Williams-Sonoma all saw their shares plunge following Trump’s announcement.

President Trump announced Friday that his administration is investigating imported furniture for potential tariffs. Hi Alfan – stock.adobe.com

Wayfair, whose stock fell by more than 6% after the closing bell on Friday, imports much of its furniture inventory from overseas suppliers.

Shares of RH were also down more than 6% while Williams-Sonoma stock dropped more than 4% Friday evening.

However, not all furniture companies suffered. La-Z-Boy shares actually rose nearly 2.5% on the news since the company conducts most of its manufacturing operations within the United States.

The furniture industry investigation adds to Trump’s growing list of sectoral tariff targets.

Trump said the probe into imported furniture would wrap up within 50 days. Getty Images

He has already imposed steep duties on automobiles, steel and aluminum while floating similar measures for copper, pharmaceuticals and semiconductors.

Friday’s announcement left unclear whether furniture tariffs would stack on top of existing country-specific duty rates that Trump has negotiated through bilateral trade deals.

The Trump administration has spent months conducting trade negotiations with partners worldwide, seeking to rebalance what it views as unfair global commerce arrangements.

Recent framework agreements with the European Union and China have provided some market stability, though many longer-term trade disputes remain unresolved.

The timing of potential furniture tariffs comes as the industry faces significant headwinds.

Companies like Wayfair have endured more than a year of declining demand for big-ticket items, including couches and dining room sets.

The furniture sales slump stems partly from a sluggish housing market as prospective buyers wait for interest rates to decline before making major purchases.

Friday’s announcement left unclear whether furniture tariffs would stack on top of existing country-specific duty rates that Trump has negotiated through bilateral trade deals. Hassan – stock.adobe.com

Fewer new home sales translate directly into reduced furniture demand, since consumers typically buy new furnishings when they move into different residences.

Persistent inflation has also made consumers more selective about discretionary spending. Restaurants, clothing, travel and home decor have all experienced reduced sales as shoppers tighten their budgets.

Trump’s tariff strategy aims to encourage companies to relocate manufacturing operations back to the United States, particularly in states with strong furniture-making traditions.

North Carolina and other southeastern states historically served as major furniture production hubs before much of the industry migrated overseas in search of lower labor costs.

The investigation represents another step in Trump’s broader trade agenda focused on reducing America’s reliance on foreign manufacturing across multiple industries.

Previous tariff announcements have produced mixed results, with some companies announcing plans to reshore production while others have absorbed higher costs or passed them on to consumers.

The Post has sought comment from the American Home Furnishings Alliance.

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Is the Decline of Reading Causing Political Dysfunction?

admin — Fri, 27 Jun 2025 01:10:43 +0000

Welcome to Today in Books, our daily round-up of literary headlines at the intersection of politics, culture, media, and more.

Is the Decline of Reading Causing Political Dysfunction?

Americans are reading less and scrolling more. Social media erodes critical thinking skills and contributes to polarization. As book people, it can be tempting to think everything would be better if everyone just read more books. Vox‘s Eric Levitz examines the the claim that the decline in reading is poisoning our politics, and while his answer isn’t the straightforward affirmative you might be hoping for, it’s exactly the kind of nuanced analysis the moment calls for. We all need to have our assumptions challenged and to be reminded that reading itself is not resistance.

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Sure, Why Not, Let’s Do Another Jane Austen Adaptation

The studios behind the 2005 adaptation of Pride & Prejudice and 2020’s Emma are running back the play one more time. Daisy Edgar Jones will star in a forthcoming adaptation of Sense and Sensibility produced by Focus Features and Working Title Films. From the marsh of Where the Crawdads Sing to Twisters to an adaptation of a an enduringly beloved classic? Hell of a glow-up for Edgar Jones.

NPR Staffers’ Favorite Books of the Year So Far

NPR hosts tend to get all the glory, so it’s fun to see this round-up of their correspondents’, editors’, and other staffers’ favorite books of 2025 so far. A lot of familiar titles—Audition, The Antidote, and The Dream Hotel among them—but some fresh selections, too. I added Liquid and Fair Play to my TBR and got the nudge I’ve been waiting for to pick up Vantage Point.

Summer Releases by Latine Authors

Book Riot’s managing editor Vanessa Diaz is here to crash your TBR with a look at summer releases by Latine authors. Subscribe to our Latine Lit newsletter for regular news, recommendations, and more.

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