CES 2026: PC Industry Faces Supply Crunch

CES 2026 revealed a challenging outlook for the computing industry, characterized by rising prices and limited availability of consumer goods. The primary driver is the skyrocketing cost of RAM, fueled by massive demand from AI datacenters.

Key announcements included:

• Dell launched new XPS laptops at significantly higher prices than expected.
• AMD and NVIDIA unveiled powerful AI supercomputers that consume vast amounts of memory.
• Industry executives predict a shift toward component upgrades rather than full system replacements.

The event confirmed fears that the global supply of memory is being diverted to support the AI industry, leaving consumer PC manufacturers struggling with costs and supply constraints.

The computing industry is facing a difficult year, with CES 2026 serving as a clear confirmation of ongoing supply chain issues. The root cause is the high demand for memory from AI datacenters, which has driven RAM prices to unprecedented levels. This shortage affects not just memory, but the entire semiconductor supply chain.

Wonjin Lee, Samsung's marketing leader, addressed the severity of the situation during the event. He stated that the issues surrounding semiconductor supplies are widespread and will impact everyone. According to Lee, prices are rising in real-time.

The sentiment was echoed by David McAfee, Corporate Vice President and GM of Client Channel Business at AMD. McAfee noted that the volatility in the memory market over the past two months has been 'unprecedented.' He emphasized that no product containing memory is immune to the current forces affecting DRAM pricing.

The impact of these supply constraints is evident in the pricing of new consumer hardware. Dell’s latest XPS 14 and XPS 16 laptops were among the first systems hit by these demands. While previous models started at $1,699 and $1,899, the new models were initially projected to be cheaper at $1,650 and $1,850. However, current pricing tells a different story.

As of the launch window, the XPS 14 starts at $2,050 and the XPS 16 starts at $2,200. A Dell representative clarified that these are not entry-level configurations. The company expects to release cheaper systems below $2,000 in February, though final pricing for those models remains unconfirmed.

Despite the price hikes, Dell's offerings remain more affordable than Apple's high-end models. The MacBook Pro 16-inch retails for $2,499, while the 14-inch model is priced at $1,599. Dell's new systems, despite their higher cost, offer compelling performance but launch without the budget-friendly configurations consumers were hoping for.

With full system builds becoming prohibitively expensive due to high RAM costs, AMD predicts a shift in consumer behavior. David McAfee suggested that 2026 will likely see a trend toward 'piecemeal upgrades' rather than complete system rebuilds.

McAfee highlighted the longevity of AMD's AM4 and AM5 platforms as a significant advantage for gamers. These platforms allow users to upgrade their CPUs without the need to purchase new RAM kits or motherboards. This provides a pathway to better performance without paying the premium prices currently demanded by the memory market.

He noted that upgrading from older processors like the Ryzen 5 2600 or 3000 series to a 5000 series processor on an existing AM4 motherboard offers a substantial performance boost. McAfee also mentioned that 30 to 40 percent of AMD's business still revolves around the AM4 platform.

Interestingly, McAfee also pointed out that AMD's X3D chips with 3D V-cache are less affected by slower RAM speeds. Their large onboard L2 and L3 cache compensate for less ideal memory transfer speeds, offering a buffer against the current market volatility.

The primary reason for the memory shortage is the insatiable appetite of the AI industry. At CES, both NVIDIA and AMD unveiled massive AI supercomputers that require enormous amounts of RAM.

NVIDIA announced the Vera Rubin AI supercomputer, which supports up to 54TB of RAM across 36 Vera CPUs and 20.7TB of memory across 72 GPUs. Similarly, AMD introduced the Helios AI rack, supporting up to 31TB of memory across 72 AMD Instinct MI455X GPUs.

These systems are designed to power AI model building and inferencing, creating a significant demand that consumes the global supply of memory. Consequently, the supply intended for consumer PCs is being diverted to enterprise AI infrastructure. This shift benefits major AI players like OpenAI, Microsoft, and NVIDIA, but poses significant challenges for the average consumer looking to purchase a new computer.

AMD's McAfee remains optimistic that the current volatility will stabilize, predicting that prices should settle within the first three to six months of the year. Until then, consumers should prepare for a year of higher prices and limited availability.