Intel says memory prices need to fall as market hits $595B in 2026

Intel’s leadership is focused on the explosive growth of the global semiconductor memory market, which is projected to reach roughly $575 billion in 2026 amid persistent supply constraints driven by artificial intelligence demand. While the industry grapples with elevated memory prices, the market’s sheer size highlights the stakes for chipmakers and device manufacturers navigating the current memory shortage.

The Memory Shortage Extends Into 2028

Intel CEO Lip-Bu Tan warned in early February that the global memory shortage shows no signs of relief, stating there is “no relief as far as I know” and that supply constraints could persist until 2028. The shortage has been fueled by aggressive demand from data centers and AI training operations, which are consuming the bulk of available memory production. Counterpoint estimates that memory prices surged 50 percent in 2025 and are projected to climb another 40 to 50 percent in the first quarter of 2026, according to Reuters reporting from January 2026. This pricing pressure extends across DRAM and NAND memory chips used in everything from servers to consumer devices.

AI Reshaping the Memory Market

The semiconductor memory market’s trajectory in 2026 reflects a fundamental shift in demand patterns. AI infrastructure is consuming 70 percent of memory chips made in 2026, according to discussions in tech communities, leaving constrained supply for traditional consumer and commercial applications. The concentration of demand among a handful of large data center operators has made memory a strategic bottleneck. Micron Technology stock surged past $1,000 after analyst upgrades, reflecting investor confidence in memory-maker profitability amid the tight market conditions. As long as AI training facilities maintain aggressive expansion and memory supply remains below peak demand, price relief is unlikely until manufacturing capacity catches up in the latter part of the decade.

Sources

• Bloomberg — Intel CEO Lip-Bu Tan’s statement on memory shortage duration and relief timeline, published Feb 3, 2026.
• Reuters — Counterpoint data on memory price increases in 2025 and Q1 2026 projections, published Jan 21, 2026.
• LinkedIn (Hanwha Investment & Securities) — Global memory market projection of $574.9 billion in 2026, from industry analyst reports.
• Tech Industry Discussion — Data center memory consumption trends and supply chain analysis.