Anticipating a decline in memory prices? The CEO of Intel indicates that the shortage will not be resolved in the near future.
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The demand for AI is tightening memory supply, and Intel predicts that relief is not expected until at least 2028.
If you have been hoping for the global memory shortage to improve this year and for hardware prices to decrease, Intel CEO Lip-Bu Tan has some disappointing news. During a recent Cisco Systems conference, Tan indicated that the shortage will likely persist for at least two more years.
As reported by Bloomberg, Tan mentioned insights from two major players in the memory sector who told him, “There’s no relief until 2028.” This timeline coincides with statements made by Micron’s Christopher Moore, VP of Marketing for its Mobile and Client Business Unit, who indicated that tight supply conditions are expected to continue for the foreseeable future.
This extended shortage is primarily driven by the rapid expansion of AI infrastructure, which is consuming memory at an unprecedented rate. As memory manufacturers increasingly focus on meeting the demands of data centers and AI workloads, the supply for consumer devices is being constrained. For consumers, this may result in higher prices for laptops, smartphones, PC components, and even televisions.
AI demand could keep your next hardware upgrade costly
Nvidia’s upcoming AI hardware may exacerbate the situation. Tan noted that the company’s new Rubin platform is likely to further increase demand. “AI is going to absorb a lot of memory,” Tan remarked, which could tighten supply for consumer electronics even further.
For consumers, this indicates that the pressure on hardware pricing is unlikely to ease in the near future. Devices may continue to be sold at higher prices or with reduced memory configurations, unless memory supply increases significantly or AI infrastructure demand diminishes. Until that happens, buyers might need to be strategic with their upgrades or hold onto their existing hardware for longer than normal.
Pranob is an experienced tech journalist with over eight years of experience in consumer technology reporting.
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Anticipating a decline in memory prices? The CEO of Intel indicates that the shortage will not be resolved in the near future.
Intel CEO Lip-Bu Tan states that the worldwide shortage of memory is not expected to improve in the near future, cautioning that supply limitations may continue until 2028.
