60% of PC gamers shelve build plans as AI crunch drives component prices up 300%+
The AI data center boom has consumed so much memory and processor supply that PC hardware prices have climbed to levels driving enthusiasts away. 32GB DDR5 kits that cost under $100 now sell for $360+. Motherboard shipments are down 25%, and AMD warns of 20% revenue decline as AI infrastructure starves the consumer market.
PC gamingAI infrastructureHardware shortageSupply chainDRAM pricingData centers
The golden age of affordable PC building appears to be over—at least for now. A relentless wave of AI data center construction has consumed so much of the world's memory and processor supply that enthusiast PC hardware prices have climbed to levels that are driving builders away from the hobby entirely.
A survey published by Tom's Hardware on May 16, 2026, found that 60% of PC gamers have no plans to build a new PC in the next two years, citing the punishing cost of components as the primary reason. The survey captured the mood of an enthusiast community watching 32GB DDR5 memory kits—once available for under $100—sell for $360 or more at U.S. retailers since early 2026.
The downstream effects are hitting hardware makers hard. Tom's Hardware reported on May 6 that motherboard shipments from the four largest Taiwanese manufacturers are on pace to fall by roughly 25% or more this year. Asus, which sold 15 million motherboards in 2025, is projected to move only about 10 million in 2026. Gigabyte and MSI have slashed their own internal forecasts to 9 million and 8.4 million units respectively, while ASRock faces the steepest decline at an estimated 37%.
The contraction traces directly to AI infrastructure spending. Here is what is happening, why it matters to PC builders, and whether there is any relief in sight.
The AI data center supply crunch: memory redirected to AI accelerators
The core problem is memory. Samsung, Micron, and SK Hynix—the three companies that control most of the global DRAM market—have redirected wafer capacity toward for AI accelerators like and GPUs. HBM commands and is in from hyperscalers (Google, Microsoft, Amazon, Meta) building out AI infrastructure.
TrendForce projected earlier this year that PC DRAM contract prices could nearly double quarter-over-quarter in Q1 2026, with further increases of 45–50% forecast for Q2. Goldman Sachs estimated even steeper climbs: 90–95% quarter-on-quarter for conventional DRAM in Q1 alone. Those are not annualized figures—they are three-month jumps.
For consumers, that translates to sticker shock. MSI's general manager told investors in March that a 16GB memory module that cost $40 last year now costs $170 or more, and that the company plans to raise gaming hardware prices by 15 to 30 percent over the coming months to offset the input cost surge.
The math is brutal: a mid-range gaming build that might have cost $1,200 in 2024 could now run $1,800–$2,000 with equivalent specs, driven almost entirely by memory and motherboard price inflation.
Motherboard market in free fall: Asus, Gigabyte, MSI slash forecasts
Motherboard manufacturers are feeling the pain. Tom's Hardware reported that the four largest Taiwanese motherboard makers—Asus, Gigabyte, MSI, and ASRock—are all projecting steep declines in unit shipments for 2026:
Asus: 15 million boards in 2025 → ~10 million in 2026 (-33%)
Gigabyte: Revised forecast to ~9 million units
MSI: Lowered target to ~8.4 million units
ASRock: Facing an estimated 37% decline
Combined, that is a 25% or more drop across the sector. For context, the motherboard market was growing or stable in the years leading up to 2025. The 2026 contraction is a structural shift, not a cyclical dip.
The cause is twofold:
High memory prices are making complete builds unaffordable for many enthusiasts, suppressing demand for motherboards.
Component availability is constrained, so even builders willing to pay premium prices sometimes cannot source the parts they want at any price.
MSI's management acknowledged in a March investor call that they are raising prices to maintain margins, but also noted that higher prices are driving customers away from the DIY market entirely. Some are switching to prebuilt systems (which face the same input cost pressures but can smooth pricing over time), while others are simply waiting for prices to normalize—a wait that could stretch into 2027 or beyond.
GPU and CPU makers pivot to AI: AMD warns of 20% gaming revenue decline
The memory crunch is not the only supply constraint. Nvidia, Intel, and AMD have all reduced consumer chip production to prioritize AI processors, which command higher margins and are selling out to data center operators as fast as fabs can produce them.
AMD warned on May 5, 2026, that it expects a 20% decline in gaming revenue in the second half of 2026 due to "memory and component costs," according to CEO Lisa Su. That is a remarkable admission from a company that has historically treated the gaming market as a core pillar of its business. The implication is clear: AI chips are more profitable, and when fab capacity is constrained, AI gets priority.
Nvidia is in a similar position. CEO Jensen Huang has said publicly that GPU shortages will persist through 2026, driven by datacenter demand that shows no signs of slowing. Even with TSMC ramping production, the bottleneck extends beyond raw wafer capacity: lead times for datacenter GPUs now stretch 36 to 52 weeks, constrained by shortages of high-bandwidth memory and advanced packaging capacity (CoWoS technology, which is fully booked).
Memory suppliers are prioritizing high-margin AI components, and packaging lines cannot scale fast enough to meet demand. The result is a structural mismatch between AI infrastructure buildout and consumer hardware supply, with consumer builders caught in the crossfire.
What PC builders are facing in 2026: the brutal math
Here is what the pricing landscape looks like for someone trying to build a gaming PC in May 2026, compared to mid-2025:
Component
2025 Price
2026 Price
Increase
32GB DDR5 (2x16GB)
~$100
$360+
+260%
Mid-range motherboard
~$150
$200–$250
+33–67%
16GB GPU (e.g., RTX 4060 Ti)
~$400
$450–$550
+13–38%
Mid-range CPU (e.g., Ryzen 7)
~$300
$320–$350
+7–17%
SSD (1TB NVMe)
~$80
$90–$110
+13–38%
A complete mid-range build that might have cost $1,200–$1,400 in 2025 now costs $1,800–$2,200, driven primarily by memory and motherboard inflation. For enthusiasts targeting high-end systems with 64GB RAM or premium boards, the premium is even steeper.
The survey Tom's Hardware published captures the sentiment this pricing creates: 60% of respondents said they have no plans to build a new PC in the next two years. That is not a temporary deferral—it is a structural shift in buying behavior.
Ripple effects beyond gaming: enterprise and SMBs shift to leasing
The pricing crunch is also reshaping how smaller companies access compute. As hardware costs climb, organizations are increasingly turning to hybrid models that blend cloud GPU rentals with leased on-premise equipment, according to a Deloitte outlook on the 2026 hardware market.
Fair market value (FMV) leasing structures have emerged as a way for companies to avoid owning rapidly depreciating AI hardware while maintaining predictable costs. Instead of buying a $50,000 AI server outright and watching it lose value as new chips arrive every 12–18 months, companies lease equipment on multi-year contracts with refresh options, offloading depreciation risk to the lessor.
This is a fundamental shift from the capital-expenditure model that dominated enterprise IT for decades. The AI boom has made ownership less attractive because the rate of hardware obsolescence has accelerated: a 2024-era GPU can be outclassed by a 2025 model that is 2–3x faster at inference, making multi-year ownership a risky bet.
For SMBs and startups, the shift to leasing or cloud-only has practical appeal—it lowers upfront costs and provides flexibility—but it also locks them into recurring payments and vendor dependencies that can be hard to escape if the business pivots or scales down.
When will prices come back down? Not until late 2026 or 2027
The bad news for PC builders: relief is not imminent. New fab capacity is unlikely to come online before late 2026 or 2027, and even then, memory makers will likely continue prioritizing their most lucrative customers—AI infrastructure operators—over consumer DRAM buyers.
Samsung, Micron, and SK Hynix have all announced capacity expansions and pledged to boost output with billions in investment, but new production lines take at least a year to come online, and the ramp-up to full capacity can take another year beyond that. Meanwhile, AI data center construction shows no signs of slowing: hyperscalers are still racing to build out infrastructure for training and inference at scale, and every new cluster needs thousands of GPUs and terabytes of HBM.
TrendForce and Goldman Sachs both project that DRAM prices will continue rising through at least mid-2026, with the possibility of stabilization in Q3 or Q4 if new capacity comes online faster than expected. But "stabilization" does not mean a return to 2024 prices—it means prices stop climbing, not that they drop back to pre-boom levels.
For enthusiasts, the calculus is simple if unwelcome: wait, or pay up. Builders who need a new system now are paying a premium that could be 30–60% higher than equivalent hardware cost 18 months ago. Builders who can delay face an uncertain timeline: prices might start easing in late 2026, but there is no guarantee, and if AI infrastructure spending accelerates (e.g., due to new models requiring even more compute), the supply squeeze could extend into 2027 or beyond.
explainx.ai perspective: AI infrastructure costs are reshaping consumer tech
At explainx.ai, we track how AI infrastructure decisions ripple through the broader tech ecosystem. The PC hardware crunch is a textbook example of what happens when enterprise AI spending collides with consumer supply chains that were not designed to handle simultaneous demand shocks across memory, processors, and packaging.
Here is what we are seeing from the agent and infrastructure side:
1. AI infrastructure is prioritized because margins are higher
A single H100 GPU can sell for $25,000–$40,000 in the datacenter market, compared to a consumer RTX 4090 at $1,600–$2,000. For TSMC, Samsung, and SK Hynix, the choice is clear: AI chips command higher margins and guaranteed volume from hyperscalers signing multi-year contracts. Consumer DRAM is a low-margin commodity by comparison.
This is not a temporary priority shift—it is a structural change in how fabs allocate capacity. As long as AI infrastructure spending remains robust, consumer hardware will be second-tier in the production queue.
2. The "AI tax" is hitting consumers who don't use AI
Most PC gamers are not building systems to run LLMs or train models. They want hardware for gaming, content creation, or general-purpose computing. But they are paying AI-driven prices because the supply chain does not differentiate between consumer and enterprise buyers—memory is memory, and if AI operators are willing to pay 2–3x for HBM, consumer DRAM prices rise in tandem due to constrained wafer capacity.
This is what we call the "AI tax": consumers bearing the cost of infrastructure buildout they do not benefit from. It is a side effect of how global semiconductor supply chains operate, where capacity is fungible and demand from the highest bidder sets the price floor.
3. Leasing and cloud are the new normal for compute-heavy workloads
For businesses and developers building AI-assisted tools, the shift to leasing and cloud GPU rentals is already well underway. Startups that would have bought on-premise servers in 2020 now rent GPU instances from AWS, GCP, or Azure, or lease hardware on FMV contracts that cap depreciation risk.
This is rational given how fast AI hardware depreciates, but it also means less ownership and more vendor lock-in. If your startup is built on rented GPUs and your lease expires or your cloud bill spikes, you face migration costs that can be prohibitive.
For individuals and hobbyists, the calculus is different: you cannot lease a gaming PC the way a business leases a server, so you are stuck with ownership at inflated prices or waiting for supply to normalize.
4. The PC enthusiast market may shrink permanently
If 60% of gamers are delaying builds for two years, that is a generation of enthusiasts who may never return to the hobby. Some will switch to prebuilts, others to consoles, and a segment will simply exit the market entirely.
For motherboard makers, GPU vendors, and memory manufacturers, this is a customer acquisition problem: if a cohort of potential builders sits out 2025–2027, they may not come back even when prices normalize, because they have adapted to alternatives or lost interest in the hobby.
The PC enthusiast market has always been smaller than mainstream consumer electronics, but it has historically been loyal and sticky. The 2026 pricing crunch may break that stickiness in ways that take years to repair.
What to do if you need to build now
If you must build a PC in 2026 despite the pricing environment, here are strategies to minimize the damage:
1. Prioritize last-gen components where performance is "good enough"
DDR4 systems are still viable for most gaming and productivity workloads, and DDR4 memory prices have not spiked as severely as DDR5. If you can build on a B550 or B660 motherboard with DDR4 support, you can save $200–$300 on memory alone.
Similarly, last-gen GPUs (e.g., RTX 3060 Ti, RX 6700 XT) are often available at lower premiums than current-gen cards, and for 1080p or 1440p gaming, the performance difference is negligible.
2. Buy used or refurbished where risk is acceptable
The used market for PC components has grown significantly as builders who upgraded in 2023–2024 sell off older hardware. Platforms like eBay, r/hardwareswap, and Craigslist have active listings for GPUs, CPUs, and memory at 30–50% discounts compared to retail.
Risk is higher (no warranty, potential for damage), but for builders comfortable with testing and troubleshooting, the savings can be substantial.
3. Wait for sales or bundle deals
Retailers occasionally run promotions that bundle memory with motherboards at lower effective prices. Micro Center, Newegg, and Amazon all have periodic sales that can shave 10–15% off inflated prices.
Set up price alerts (e.g., via CamelCamelCamel for Amazon) and be ready to buy when deals appear. In a high-price environment, even small discounts add up.
4. Consider a prebuilt if the math works
Prebuilt systems from NZXT, CyberPowerPC, iBuyPower, and others sometimes offer better value than DIY builds because manufacturers can smooth input cost volatility over time and negotiate volume pricing with suppliers.
Compare the total cost of a prebuilt with equivalent specs to a DIY build. If the prebuilt is within 10–15% and includes warranty and support, it may be the smarter choice in 2026.
The bigger picture: AI infrastructure is reshaping the hardware supply chain
The PC gaming hardware crunch is not an isolated event. It sits within a broader transformation of how semiconductor supply chains allocate capacity in an era of AI-driven demand:
Memory makers are redirecting wafer capacity toward HBM for AI accelerators, starving consumer DRAM.
Foundries (TSMC, Samsung) are prioritizing AI chips over consumer processors because margins are higher and volume is guaranteed.
Packaging facilities are fully booked with CoWoS orders for datacenter GPUs, creating bottlenecks even when wafer capacity exists.
Enterprises are shifting to leasing and cloud models to avoid owning rapidly depreciating AI hardware, changing the economics of compute ownership.
For PC builders, this means the golden age of affordable DIY gaming rigs—roughly 2015–2023—is over, at least for now. Prices may stabilize in late 2026 or 2027 as new fab capacity comes online, but they are unlikely to return to pre-boom levels as long as AI infrastructure spending remains robust.
The takeaway: if you are a PC enthusiast, budget accordingly. If you are a business or developer building AI-assisted tools, plan for higher hardware costs and consider leasing or cloud as viable alternatives to ownership. And if you are waiting for prices to drop, set realistic expectations—relief is not imminent, and the new normal may be permanently higher than what we saw in the 2010s and early 2020s.
About explainx.ai: We build skills, MCP servers, and training for teams working with AI agents—so infrastructure decisions, cost management, and epistemic hygiene are part of the architecture, not an afterthought. Explore our blog for practical guides on LLMs, hardware trends, agent workflows, and research integrity.
This post summarizes the May 2026 PC hardware pricing crisis driven by AI data center demand and situates it within the broader landscape of semiconductor supply chain shifts. All pricing data and projections are based on publicly available industry reports; consult hardware retailers and analysts for current market conditions.
