The Indicator from Planet Money Chips up, rent down, and are people really skimping on holiday gifts?
31 snips
Dec 5, 2025 
Jeff Guo, a journalist and contributor to Planet Money, delves into the surprising surge in DRAM prices fueled by AI demands and long production delays. He sheds light on the cyclical nature of the RAM market, where supply struggles to keep pace with demand. The discussion also uncovers Americans cutting holiday gift budgets by $229, yet online spending during Black Friday and Cyber Monday hits record highs. Lastly, Guo reports on a national decline in apartment rental prices, driven by a construction boom in the South.
AI Snips
Chapters
Transcript
Episode notes
DRAM Prices Quadrupled From AI Demand
- RAM (DRAM) chip prices have recently quadrupled due to surging demand from AI and data centers.
- Long factory lead times make supply slow to catch up, causing extreme cyclical booms and busts.
Stores Sell RAM Like Catch-Of-The-Day
- Computer stores stopped putting price tags on RAM and require staff to quote current market prices.
- Jeff Guo compares RAM pricing to restaurant 'catch of the day' sales tactics.
Long Lead Times Drive RAM Cycles
- The RAM market is famously cyclical because factories take years to build and capacity lags demand.
- That long lead time means current shortages may persist, keeping prices elevated.