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- Intel's CEO has said that AI hardware will be in short supply for the next 2 to 3 years
- Of course, this refers to the ongoing memory crisis, and consumers will get shorter shrift than AI players
- A new report from Barclays also shows that contract pricing for RAM has risen 24% over the past quarter for DDR4 (and 20% for DDR5)
Need more fuel to stoke the idea that the RAM crisis is here to stay? Doubtless you don't, but sadly we've had a couple more indications that the memory shortage will last for a depressingly long time, with Intel's CEO the latest to weigh in.
Wccftech reports that Intel's Lip-Bu Tan was speaking in Singapore at the Asia Future Forward event, a conference organized by DBS Bank, where the CEO discussed his thoughts regarding trends with AI – including the amount of memory it's eating up.
As flagged by Theresa Perrin on X, Tan observed that "AI hardware will stay in short supply for the next 2 to 3 years" — primarily referring to memory — and that this was "driven by persistent constraints in the underlying tech supply chain."
While the CEO is talking directly about RAM (as well as GPUs, and to an extent CPUs) used in data centers for AI applications, the fact that the AI industry is going to be short on supply for perhaps the next three years means that consumer RAM is going to be even thinner on the ground. It's no secret that the greater profits to be had by catering to the AI industry mean that this memory is the priority for chip makers.
Wccftech also noticed another post on X, from 456X, highlighting a new report from Barclays that shows contract pricing (from chip makers) for DDR4 RAM has risen 24% over the last three months, and that DDR5 has gone up 20%.
Barclays further observed that one of the big memory chip makers, Micron, will see its supply levels of RAM remain constrained through 2028. In other words, we can expect that memory supply is going to keep on being a major problem for the next two years, with 'through' 2028 meaning that this year is included in the gloomy prediction.
Analysis: yet more doom nuggets — and then there's the rise of the robots
The reported rises in the contract price of RAM according to Barclays match what we've seen at retail over the past few months, with some notable jumps in the price of DDR5 memory (which in Germany has reached a ridiculous level of 544% up on the price it was before the RAM crisis began last July).
What Barclays, and Intel's CEO, are now telling us is that this kind of pain is likely to continue, and that RAM supply will continue to be frustratingly short until 2029. Unfortunately these kinds of forecasts are becoming more commonplace, with pretty much everyone's view appearing to align with the idea of the RAM crisis hanging around until the end of the decade.
At the very least, we can expect 2027 to be a repeat of this year — meaning more memory prices hikes, and other components besides, such as GPUs — with 2028 likely to follow in a similar vein. Indeed, Micron has said as much itself, while letting us know that robots (or 'physical AI') will be eating up a lot of RAM supply in the future.
