Graphics Cards and RAM Price Surge in India:
Graphics cards and RAM are experiencing high prices in India (early 2026) due to an AI super-cycle, where high demand for AI server components is draining supply, causing up to 300% price hikes. Manufacturers are prioritizing high-bandwidth memory (HBM) for data centers over consumer DRAM. In India, high import duties, 18% GST, and limited logistics exacerbate these costs.
Key factors driving the price surge:
- AI Demand & Supply Shortage: The rapid expansion of artificial intelligence (AI) has led companies to buy massive amounts of DRAM (for RAM) and GPUs, causing a shortage for consumer products.
- Production Shift: Major manufacturers (like SK Hynix, Samsung) are prioritizing high-profit margin AI chips over standard DDR4/DDR5 RAM, creating a shortage.
- Transition to DDR5: The industry is moving to DDR5, which has tightened the supply and increased the price of standard memory.
- India-Specific Costs: Indian retail prices are significantly higher due to 18% GST, custom duties, and high shipping/logistics costs.
- Logistics & Distribution: Smaller shipment volumes to India often lead to high air-freight costs and retailer-level price hikes.
What to Expect: The high prices are projected to continue as manufacturers struggle to meet demand, with some predictions stating it may persist until 2026 or later. Experts recommend that buyers in India brace for, or plan around, these increased costs.
