Memory Price Burden Likely to Propagate to AI From Consumer Electronics -- Market Talk

Dow Jones06-22

0353 GMT - The burden of a memory price hike will likely propagate from consumer electronics to AI, Bernstein analysts say in a research note. Conventional DRAM prices have surged in recent quarters, driven by a massive supply rellocation towards HBM to power AI computing. However, HBM price is locked by annual contracts and hasn't moved. Memory suppliers and GPU/XPU companies are negotiating for higher HBM prices for 2027 to narrow the profitability gap with conventional DRAM, the analysts say. GPU/XPU suppliers could further mark up HBM prices to protect their margins as well, they say. As a result, Bernstein estimates hyperscalers may need to hike their AI capex by 30% to cover higher memory costs. Given the competitive pressure and funding availability, hyperscalers however will unlikely slow down their AI investments, they add. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

June 21, 2026 23:53 ET (03:53 GMT)

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