PC and server prices are rising as chipmakers prioritize AI datacenter production over consumer electronics, creating what industry analysts call a fundamental reallocation of global semiconductor capacity.
UK distributor data shows consumer desktop prices jumped 8% year-on-year to £565 in the first five weeks of 2026, according to analyst firm Context. Laptops increased 1.1% to £454, reflecting depletion of pre-shortage inventory. Analyst James Bates notes manufacturers are "redirecting capacity away from consumer-grade memory" toward high-bandwidth memory required for AI workloads.
The numbers are significant: datacenters will consume approximately 70% of global memory chip production in 2026, versus their historical share. Counterpoint Research reports memory prices surged 80-90% versus Q4 2025, affecting DRAM, NAND, and HBM. Morgan Stanley estimates $3 trillion will be spent on AI datacenters between 2025-2029.
This appears structural rather than cyclical. The three dominant memory producers (Samsung Electronics, SK Hynix, Micron Technology) are deliberately prioritizing AI-grade memory, which is significantly more profitable than consumer alternatives. Dell and Lenovo already implemented 15-20% price increases in December 2025 and January 2026 respectively. Context forecasts additional inflation from Q2 onward as component constraints intensify.
Server infrastructure faces similar pressure. Omdia projects server CPU prices could increase 11-15%, while Samsung and SK Hynix are reportedly raising server memory prices up to 70% this quarter. IDC forecasts a 9% contraction in PC sales and 5% decline in smartphone sales in 2026 as a result.
Relief remains distant: Micron's new New York fabrication plant won't produce DRAM before 2030, though an acquired Taiwan facility could deliver chips in 2027. In the interim, HP, Dell, Acer, and Asus are reportedly considering Chinese memory suppliers for the first time, according to Nikkei Asia.
The broader impact extends beyond computing: household appliances, televisions, and smart home devices face similar pressure. This manifests as tighter allocation, longer lead times, and higher pricing rather than outright unavailability. Worth noting: manufacturers are building inventory ahead to mitigate further increases, which may temporarily support demand.