RAM Prices Could Get Even Worse as TeamGroup Warns of Severe Shortages Until Mid-2027

Memory manufacturer TeamGroup has warned that the global RAM shortage could become even worse in the coming months, with prices expected to continue rising through mid-2027.

According to CEO Chen Ching-wen, AI data centers are consuming an increasing share of global memory production, leaving manufacturers struggling to secure enough supply. He warned that the situation could reach a point where customers cannot purchase memory products even if they are willing to pay higher prices.

TeamGroup expects the worst memory shortages between late 2026 and mid-2027

According to TeamGroup’s financial report, Chen expects the most severe period of the memory shortage to occur between Q4 2026 and Q2 2027.

Memory prices have already increased dramatically. DDR5 16GB chips rose from $8.70 in October 2025 to $48 in September 2026, representing an increase of more than 450%. DDR4 8GB chips have also experienced substantial price increases.

The shortage has forced buyers to pay premiums of 30% to 50% on the spot market to secure additional supplies. Chen explained that even long-term purchasing agreements no longer guarantee sufficient memory availability.

TeamGroup itself has had to purchase additional memory at higher spot-market prices to meet customer demand, highlighting the pressure affecting manufacturers across the industry.

AI data centers are taking a growing share of memory production

TeamGroup attributes much of the shortage to growing demand from AI infrastructure and enterprise customers, which are absorbing a significant portion of global DRAM production.

The company has also experienced a major shift in its customer base. During the first nine months of 2026, business-to-business revenue accounted for approximately 64% of its total revenue, compared with just 24% during the same period in 2025.

Meanwhile, the consumer segment’s share declined from around 75% to 35%.

Chen explained that TeamGroup is responding to changing market demand rather than deliberately moving away from consumer customers.

The situation comes as other technology companies prepare for the growing impact of AI infrastructure investments. AMD recently warned of a potential PC market slump in 2027 while reporting a 97% increase in data center revenue.

Meanwhile, Intel’s CEO predicted that AI could become bigger than the internet, although he also highlighted hardware shortages and other challenges that could slow its expansion.

The pressure is also affecting graphics cards, with RAMageddon reportedly pushing NVIDIA RTX 5090 prices up by as much as 370% since launch.

TeamGroup profits surge as memory prices increase

Despite the supply crisis, TeamGroup has reported strong financial results, benefiting from rising memory prices and demand from enterprise customers.

The company generated NT$10.139 billion, approximately $311.5 million, in revenue during Q3 2026, representing a 33% increase from the previous quarter.

Operating profit reached NT$4.511 billion, up 46.8%, while net profit increased nearly 50% to NT$3.618 billion.

However, the same price increases benefiting memory manufacturers are creating additional challenges for consumers, PC manufacturers, and other hardware companies that depend on DRAM supplies.

If TeamGroup’s forecast proves accurate, the situation could deteriorate further in early 2027, with limited availability becoming an even bigger concern than rising prices.

Via TechSpot