A Barclays strategist warns that the Federal Reserve’s interest rate hikes will fail to curb memory chip inflation because it stems from a structural supply crisis driven by insatiable AI demand. Prices for DRAM, NAND, and high-bandwidth memory have surged between 200% and 400% year-over-year, with overall memory prices climbing 4 to 7 times since mid-2025. Apple and Microsoft have already raised device prices by 15% to 25% in response to escalating memory costs. IDC forecasts DRAM supply growth of only 16% and NAND of 17% for 2026, both significantly below historical averages. The supply-demand imbalance could persist until 2027 or later, benefiting memory manufacturers like Samsung, SK Hynix, and Micron while pressuring consumer electronics and smartphone shipments.
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