In case you have been living under a rock these last few months, I'd like to inform you that things are bad in the PC hardware right now. What started six months ago with a DRAM shortage snowballed into higher-than-ever RAM and SSD prices. By the time the year was done, we saw GPU price hikes, too, as VRAM got more expensive and manufacturers stopped caring about consumer hardware. Unlike previous hardware shortages, this AI-induced crisis feels unprecedented, and all signs point to at least 2–3 more years of doom and gloom. In short, 2026 is one of the worst years for PC hardware in recent memory. And MSI confirmed as much when it called it the "most challenging year since the company was founded."

The last six months have turned the market upside down

"Winter has come for House Frey"

Let's do a brief recap of what has transpired in the PC hardware space since September 2025. After an unprecedented rise in data center demand for memory chips, the DRAM supply for consumer RAM naturally faced a shortfall. Manufacturers flocked to greener pastures, reducing or downright abandoning the consumer segment — Micron shut down Crucial, its consumer arm, to focus on AI hardware. A 32GB kit of DDR5-6000 RAM, which used to cost around $100, shot up to over $400 within weeks and months as the supply shock fully revealed itself. PC builders dreaming of upgrading from DDR4 to DDR5 put their dreams on the back burner as RAM prices broke all ceilings.

The limited wafer supply for consumer hardware also affected storage prices, as both SSDs and hard drives suffered price hikes. SSDs shot up to thrice their usual price, to the point where most 2TB consumer drives now cost $300–$350 (they used to cost around $120). Hard drives did not see as much of a price hike, but users still need to pay 30–40% more for HDDs. NAS users, home labbers, and creative professionals are the worst hit, since their storage demands are considerably more than those of gamers and regular users.

Finally, graphics cards saw significant price hikes as Nvidia and AMD focused on data center products, jacked up VRAM prices, and stopped bundling memory altogether when sending GPUs to AIBs. The prices of Nvidia cards like the RTX 5070 and RTX 5070 Ti have increased by 20–25% since January this year. Meanwhile, AMD GPUs have been a mixed bag as the RX 9060 XT 16GB has jumped by up to 30%, whereas cards like the RX 9070 XT have stayed at mostly the same price since last year (albeit inflated above the $599 MSRP).

DIY components weren't the ones to feel the pinch; laptops, handhelds, and consoles received significant price hikes, too. Everyone knew this was coming, since everything from smartphones and televisions to laptops and consoles uses RAM and storage. Laptop makers decided to reduce RAM configurations in budget models and raise prices across the stack. The prices of the PS5 and PS5 Pro recently got hiked, and even PC gaming handhelds weren't spared, as the top-end Lenovo Legion Go 2 model was jacked up by almost 50%.

MSI is calling it the most challenging year since the company's inception

Ouch, that definitely doesn't inspire hope

If all that has happened wasn't confirmation enough, MSI general manager Huang Jinqing, in a recent earnings call, lamented the current state of the PC hardware industry. He said, "This year is the most challenging year since the company was founded," (translated from Chinese). The RAM shortage and GPU supply shortfall continue to force the hands of component and device manufacturers. MSI plans to increase prices across its gaming products by 15–30% this year to cope with the pricing squeeze. When it comes to MSI laptops, the company is planning to cut back on the production of low-end models, and focus instead on mid-range and high-end variants. Selling fewer but pricier products to balance supply and revenue seems to be the strategy here.

Even for DIY components like motherboards, MSI is switching things up by prioritizing DDR4 boards instead of DDR5 models. Where previously the company was producing four times as many DDR5 motherboards as DDR4 models, it will now focus heavily on the latter. DDR4 memory has also seen price hikes, but it remains the lesser of two evils for both manufacturers and consumers. DDR4 builds have suddenly become the smarter choice for PC builders in 2026, as they offer decent performance without costing as much as DDR5 systems.

RAM prices have shown a downward trend, but it's too soon to celebrate

Let's hope things continue to improve

In a welcome move for consumers, RAM prices showed a slight decline a few weeks ago. After a relentless upward spiral, which saw some 32GB DDR5-6000 kits reaching $500, the same kits have dropped to around $370. RAM prices in China dropped up to 30%, and despite it being a localized drop, the effects can be seen across the US and Europe. This correction isn't random, since a few developments have caused a bit of panic in the industry.

First, OpenAI's intentions of buying 40% of all the global RAM supply haven't actually materialized, leaving a bit of extra inventory in the hands of manufacturers. The stocks of memory makers like Samsung, SK Hynix, and Micron tumbled by over 20%, reflecting investor panic. Second, Google's TurboQuant algorithm announcement, claiming a 6x compression in AI's working memory, predicts that Big Tech won't need as much memory as previously thought. Sure, some new announcements from AI companies could send prices soaring again, or manufacturers could slash production to keep prices high. It's too soon to declare the AI bubble popped, but at least we can celebrate the chink in the armor.

Despite this silver lining, analysts predict a 10% decline in PC sales this year. MSI's prediction is a more dire 20%, as the company prepares for the "most challenging year" in its 40-year history. I'm cautiously optimistic about the near future of the PC hardware industry. I'm hoping oversupply and consumer dissatisfaction with sky-high prices will continue to chip at prices as the year goes on. More efficient AI models could also result in panic selling, further cooling RAM and storage prices. We are far from the end of this crisis, but the road to the end may finally be in sight.

The worst isn't behind us yet

MSI may have voiced what every manufacturer was already thinking. The RAM shortage and skyrocketing prices across the industry have created a colossal challenge for companies and consumers alike. Analysts have predicted a major decline in PC sales this year, consumers have forgotten about upgrades, and manufacturers are preparing for the worst year in ages. The recent drop in RAM prices offers a glimmer of hope, but it's too soon to say if this is the start of a pattern.