Component shortages fueled by the AI boom are rippling through consumer electronics. Graphics processing units shot up first, with RAM prices climbing next and both solid-state drives and hard disk drives following suit, according to industry analysts.

The strain hits anyone assembling a PC. Hospitals stocking imaging machines and farmers buying tractors with onboard computers face higher bills too. Practically every device relies on these parts.

Tech firms are postponing launches. Enthusiast GPUs, virtual reality headsets and gaming consoles sit on hold amid the chaos. Smartphone sales boomed in 2025, but 2026 looks grim with RAM in short supply.

Apple feels the pinch. Sravan Kundojjala of SemiAnalysis told the Wall Street Journal that rising component costs are eroding the iPhone maker’s margins as AI demand devours supplies.

Gaming takes a direct blow. Nintendo’s Switch 2, already pricey, could see a price increase soon, Bloomberg reports based on sources. Sony’s PlayStation 6 faces outright delay, those same sources say.

AI outfits are spending hundreds of billions on sprawling data centers packed with power-hungry chips. Electricity rates climb in response. Consumers pick up the tab for the frenzy.

Intel CEO Lip-Bu Tan laid it bare this month. Relief might not come until 2028. Builders of laptops, phones and consoles brace for years of pain.

The crunch stems from AI’s thirst for compute power. Companies race to train models on clusters of thousands of GPUs. Each center guzzles components that once went to PCs and gadgets.

Suppliers scramble. TSMC and Samsung expand fabs, but lead times stretch into quarters. Nvidia dominates GPU sales to AI hyperscalers like Microsoft and Google, leaving scraps for others.

RAM makers Micron and SK Hynns report sold-out inventories through 2027. Storage follows the same path, with prices doubling in spots.

End users adapt. PC gamers turn to used markets. Phone buyers delay upgrades. Manufacturers hunt alternatives, like cheaper ARM chips, but AI’s pull proves too strong.

Investors watch closely. AI firms tout returns from the spend, yet Wall Street demands proof. Delays in consumer products add pressure across the board.

No quick fix appears. Fabs take years to build. Governments eye export controls on key tech. The scramble reshapes the entire electronics chain.