AI has developed a memory problem

In the UAE, 11 of 14 storage products tracked on Sharaf DG’s website were listed as out of stock on October 1, including every internal SSD in the sample.

"Memory manufacturers are allocating more production capacity towards high-margin server products, including the memory required for AI infrastructure. The capacity continues to move towards server applications, leaving less available for conventional PC DRAM," Kevin Sebastian, a creative director and technology commentator in the UAE, tells The National.

"Storage is being squeezed too NAND flash is the technology behind SSDs, USB storage and many memory cards, and it has experienced its own sharp price increases."

Is building your own PC still cheaper?

For decades, gamers, video editors, and other demanding users have often chosen each computer component separately to tailor their computers to their needs. Replacing individual parts can also extend their computers' lives.

But the savings depend on what those parts cost. Large PC manufacturers may have some protection through existing contracts, while individual builders pay current retail prices.

That raises the possibility that a pre-built computer could offer better value than an equivalent machine assembled from parts purchased separately. This, of course, will still depend on the specifications, the retailer and when the components were bought. Higher RAM and SSD prices alone do not establish that building a PC is now more expensive in every case. The same calculation applies to people trying to extend the life of an older machine. An upgrade may still cost less than a replacement computer, but rising component prices can narrow the savings. Consumers may consequently spend more, accept lower specifications or hold on to devices longer.

Which is what PC builders in the UAE are going through now - and the figures are eye-watering and budget-busting.

UAE builders' 'big budget problem'

During the first half of 2025, a decent 32GB DDR5-6000 kit could be bought anywhere from Dh400 and Dh500 in the UAE, while archived search results on Amazon UAE show several 32GB DDR5 kits at Dh400 to Dh520, according to data compiled by Kevin Sebastian, a creative director and technology commentator in the UAE. A Dubai gaming community PC build from April 2025 listed a Corsair Vengeance 32GB DDR5 kit at Dh449.

Today, prices are unrecognisable: current listings show 32GB DDR5 modules and kits exceeding Dh2,000, including a Kingston Fury Beast 32GB DDR5-6000 module at around Dh2,250. And while some higher-end Kingston kits have been listed above Dh3,000 on sites such as Microless and Amazon, it is still possible to get them at a lower price, but they are few and far between, and are still well about Dh2,000. Even prices for made-for-the-masses SD cards have jumped: a SanDisk Extreme 256GB microSD card currently sits around Dh190 to Dh280, compared to Dh120 to Dh150 a year earlier.

"That’s just how distorted the market has become ... a component that could comfortably occupy less than 10 per cent of a mid-range gaming PC budget last year can now consume a much larger share of it," Mr Sebastian tells The National.

Graphic cards have also been hit, primarily because each one carries several gigabytes of fast memory. Prices of GDDR6 and GDDR7 chips used in graphics cards rose by several hundred per cent within months of AI data centres absorbing supply.

The effect is starkest at the top end. Nvidia’s flagship RTX 5090 was launched in January 2025 at $1,999. By July 2026 it was listed at about $4,329 on Amazon US, more than double. In the UAE, some RTX 5090 listings now range from Dh25,000 to Dh30,000,

"Imagine a retailer bought a shipment of RAM at Dh400 per kit; normally it could add its margin and sell those kits relatively cheaply. If replacing that inventory now costs Dh1,200 or Dh1,500, selling the remaining stock at the old price makes much less financial sense," Mr Sebastian says.

"Retailers therefore have to decide whether to increase prices immediately, reduce margins or risk being unable to restock the product. That is one reason consumers can see enormous differences between shops and even between two models with very similar specifications."

Who benefits, and what happens next?

Meanwhile, some chipmakers are reporting record earnings. Micron reported quarterly revenue of $54.2 billion, about 4.8 times the level a year earlier. Its operating margin climbed from 32 per cent to almost 81 per cent.

Samsung’s memory business also reported strong profits, even as its mobile phone division recorded its first operating loss, partly linked to rising component costs.

Investors have rewarded the chipmakers even more. Shares in SanDisk, spun off from Western Digital in February 2025, have risen almost 38 times since the end of June 2025. Kioxia's shares are up about 20 times. Both specialise in the NAND chips used for storage.

Meanwhile, IDC expects global PC shipments to fall 11.3 per cent this year and average prices to rise 18.3 per cent. That average reflects both prices and the mix of computers sold. Some SSD prices have eased from their highs, but expanding supply takes time. Deloitte estimates new factories may not add meaningful capacity until 2029 or 2030.

Bain's report goes on to describe the market shift as “structural, not cyclical”. That does not mean prices cannot fall, but it raises a longer-term question about whom manufacturers build their capacity for. For now, an industry racing to build the next generation of AI is making some everyday technology more expensive to maintain.