The pressure is also showing up in consumer electronics, as Microsoft Corporation (MSFT) recently priced its latest Surface Pro models well above the prior generation. Nintendo Co. (NTDOY) also raised the price of the Switch 2 by $50 in May, while Sony Group Corporation (SONY) lifted the price of its PS5 Pro earlier this year.
The common thread is memory. DRAM and NAND flash chips, which help devices move and store data, are becoming more expensive as AI data centers compete for the same supply needed by smartphones, laptops, gaming consoles, and PCs.
Meanwhile, MU shares rose nearly 300% year-to-date, driven by the ongoing memory shortage.
AI Demand Is Tightening the Memory Market
The memory market is dominated by a small group of major suppliers, including Micron, Samsung Electronics (SSNLF), and SK Hynix. That concentration is giving chipmakers greater pricing power at a time when demand from AI data centers continues to rise.
