Marketplace Tech AI is eating up the world's computing memory
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Jan 13, 2026 In this discussion, Tom Minnelli, Vice President at IDC, provides insight into the booming demand for high bandwidth memory crucial for AI applications. He reveals the key role of a handful of companies producing these memory chips amid a global shortage impacting consumer electronics, PCs, and smartphones. The conversation explores how this scarcity may last until 2026 or 2027, affecting pricing and availability for gamers and everyday consumers alike, creating tough choices for device upgrades.
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AI Drives A New Memory Demand
- High bandwidth memory (HBM) is essential for training and running modern AI and is paired with NVIDIA chips.
- A surge in AI demand has created a global shortage that affects PCs, smartphones, and other consumer devices.
Shortage Could Last Years
- The memory industry cycles between oversupply and constraint, and AI has created a new, sustained area of demand.
- IDC estimates the shortage will likely persist through 2026 and possibly into 2027 unless hyperscalers pause purchases.
Supply Is Highly Concentrated
- Only a very small number of companies make high bandwidth memory, concentrating supply.
- Memory is capital intensive, so new entrants won't quickly solve the shortage.