Why Your Next Computer is About to Cost a Lot More: The Impact of AI on PC and Server Prices

Why Your Next Computer is About to Cost a Lot More: The Impact of AI on PC and Server Prices

Why Your Next Computer Is About to Cost a Lot More

If you've been putting off that computer refresh for your business, you might want to reconsider. We're heading into what could be one of the most expensive years ever for buying business PCs, and it's happening from two different directions at once.

The AI Boom Is Eating Everyone's Lunch

Here's what's happening: AI companies are building massive data centers at lightning speed, and they need tons of RAM and SSDs (Solid State Drives which are the newer versions of Hard Drives) to run all those AI models. The problem? The same factories that make memory for your office computers also make memory for these AI servers—and AI companies are willing to pay top dollar for them.

Demand for memory chips increased 50% more this quarter compared to last quarter for standard RAM, and some are paying two to three times more if they need chips faster. And unfortunately for small businesses like yours and mine, when someone is willing to pay premium prices, guess where all the supply goes?

Micron Just Walked Away from their Popular Consumer Business

Chip manufacturers are moving away from the consumer side of their businesses to focus on AI and Micron which produces Crucial Memory for gamers and custom PC builders is a perfect example of this. RAM and SSDs by Crucial Memory has been extremely popular among gamers and custom PC builders for decades. In what might be the clearest sign of where things are headed, Micron Technology announced they're shutting down their Crucial consumer brand after 29 years to focus on "larger, strategic customers in faster-growing segments". Translation: they're ditching everyday computer users to chase AI money.

Sumit Sadana, Micron's Chief Business Officer, put it bluntly: "The AI-driven growth in the data center has led to a surge in demand for memory and storage. Micron has made the difficult decision to exit the Crucial consumer business in order to improve supply and support for our larger, strategic customers."

For those of us who've been building or buying computers for years, Crucial was often the reliable, affordable choice. Now that safety net is gone by February 2026.

The Real Numbers: How Much More You'll Pay

Let's talk about what this means for your wallet. Dell and Lenovo are planning price increases of around 15% for servers and 5% for PCs, with some reports showing Dell raising commercial PC prices by as much as 15-20% starting last month.

HP CEO Enrique Lores warned that the second half of 2026 could be particularly challenging. Memory chips make up roughly 15-18% of the typical cost of a PC so when those prices surge, the whole computer gets more expensive.

And it's not just a little bump. Marco Andresen, a Lenovo executive, described it as "an unprecedented cost increase widely in the industry, especially on memory and SSD. The cost increase itself is more dramatic than usual – more than any player can mitigate."

Looking Ahead to 2026: It Gets Worse

Industry analysts are projecting that PC prices could jump by 4-8% on average in 2026, with some pessimistic scenarios showing increases up to 15-20%. That means a business laptop that costs $1,000 today could easily run you $1,150-$1,200 next year.

Here's the kicker: Micron's CEO said they can only meet half to two-thirds of current demand, and they don't expect relief until at least 2028. This isn't a short-term blip; it's a fundamental shift in where memory production is going.

And Then There Are the Tariffs

As if the memory shortage wasn't enough, the 2025 tariffs brought a whole new layer of pricing pressure. PC manufacturers are already dealing with higher import costs on components and finished computers.

The U.S. imposed tariffs on Chinese imports, and since most PCs and notebooks are produced in China, manufacturers like Acer, Asus, Dell, HP, and Lenovo are all affected. These tariff costs are being passed directly to customers because PC makers operate on such thin profit margins.

The combination of memory shortages and tariff pressure means business computers are getting hit twice—once on the component side and again on the import side.

What This Means for Your Business

If you're a small business owner planning to buy computers in the next 6-12 months, here's my straight advice:

Buy sooner rather than later. Prices aren't coming down anytime soon. In fact, Avril Wu, senior research vice president at TrendForce, predicts RAM prices will rise another 40% in the coming quarter, and she doesn't expect them to drop in 2026.

Don't wait for deals. The Black Friday bargains and end-of-year specials we used to count on? They're already gone or severely limited because manufacturers are scrambling to get any inventory they can.

Plan your IT budget accordingly. If you were planning to spend $50,000 on a computer refresh in the second half of 2026, you might need to budget $55,000-$60,000 for the same equipment, or plan to buy fewer machines.

The Bottom Line

The AI boom is reshaping the entire computer industry, and small businesses are paying the price—literally. Between memory manufacturers abandoning everyday customers for AI profits, component shortages driving up costs across the board, and tariff pressures adding another layer of expense, we're looking at the most expensive PC market in years.

The good news? Your current computers probably have a few more good years in them. The bad news? When you do need to replace them, it's going to hurt the budget more than it used to.

My recommendation: if you've got equipment that's 4-5 years old and you were thinking about upgrading in the next year, pull the trigger now while there's still some inventory at 2025 prices. Because 2026 is shaping up to be a rough year for anyone who needs to buy business computers.

Have you noticed computer prices creeping up at your business? Drop a comment and let me know what you're seeing out there.