The personal computer market is facing significant challenges due to a surge in RAM and NAND/SSD prices, driven by high demand from AI data centers. This has led to increased costs for prebuilt PCs and potential shortages in regular laptops from major brands like Lenovo, Dell, and HP. The shift in silicon wafer capacity towards high-bandwidth memory for AI applications is causing a strategic reallocation, impacting traditional PC and smartphone memory production. As a result, PC gaming and DIY markets are also feeling the strain, with rising GPU prices and smaller assemblers struggling to compete. This situation could lead to a shift towards cloud-based computing for traditional tasks, as businesses and consumers adapt to the evolving landscape. This matters because it highlights the ongoing impact of AI demand on the tech industry, potentially reshaping how we interact with and purchase computing devices.
Nvidia will not be announcing any new GPUs at CES for the first time in five years, quashing rumors of RTX 50 Super cards and highlighting a limited supply of the 5070Ti, 5080, and 5090 models. Instead, the company is expected to focus on AI developments, while considering reintroducing the 3060 model to meet demand. Meanwhile, the prices of DDR5 memory and storage have surged, with 128GB kits reaching $1460, making hardware upgrades increasingly challenging. This matters because it highlights the shifting focus in the tech industry towards AI and the impact of rising component costs on consumer upgrades.