Rising prices for PC parts are surging due to massive demand from AI data center expansions against constrained availability. HP reports that this pressure is intensely affecting computer memory, where RAM now represents 35% of the total expense for a complete unit.
During the recent earnings discussion, HP's finance chief Karen Parkhill noted, 'Last quarter, we indicated memory and storage accounted for about 15% to 18% of our PC production costs, but our projection for this year puts it at around 35%.' She added that HP plans to raise prices in response. Samsung has issued similar alerts about forthcoming hikes stemming from AI-related memory deficits.
Elevated costs are increasingly standard for those purchasing personal computers, particularly heading into 2026, with the memory shortage contributing significantly. HP's acting CEO Bruce Broussard remarked that although he anticipates market stabilization eventually, the firm is actively seeking additional vendors and pursuing more affordable memory procurement options.
Company leaders highlighted growing interest in AI-enabled computers, noting that such models constitute 35% of HP's PC revenue. This contrasts with broader sector uncertainties, including Dell's observation that everyday buyers show limited enthusiasm for AI features in PCs.
The AI surge is depleting global memory stocks, prompting firms like Micron to drop retail lines in favor of exclusive enterprise dealings. Components such as graphics processors are experiencing comparable strains.