The memory shortage is just beginning. The consumer pain is already here.

“Next year,” we warned, “we’re likely to hear a lot of management commentary on how memory shortages are increasing costs and depressing sales.”

The day of reckoning is upon us. Memory prices for PCs, smartphones, and gaming consoles are spiking and manufacturers have to adjust, with consumers bearing the brunt of the inflation.

Demand for the types of memory and storage chips in AI servers is off the charts, and the three big manufacturers—Micron Technology, SK Hynix, and Samsung Electronics—don’t have significant new manufacturing coming on-line until the middle of next year. These companies are doing whatever they can to maximize this market, the hottest they’ve ever seen. All of this year’s supply is spoken for, and 2027 order books are getting close to full. Full speed ahead.