PC hardware market faces rising component costs and shifting supply dynamics

The PC hardware market is experiencing a significant shift in value dynamics. Due to rising costs for individual components such as RAM, SSDs, and graphics cards, pre-configured gaming PCs are becoming increasingly competitive. Some retailers are offering complete systems at prices lower than the combined cost of their individual parts. For example, Micro Center has offered systems featuring AMD Ryzen and Radeon components at significant discounts, making custom builds less economically viable for some consumers.

Looking ahead to 2027, the supply of DRAM is projected to shrink, potentially maintaining upward pressure on prices. Analysts from Trendforce suggest that while demand from AI data centers continues to drive high costs, the capacity for new fabrication plants will not significantly expand until 2029. While major PC manufacturers may be protected by long-term supply contracts, retail brands and DIY builders are expected to face tighter availability and higher prices as memory manufacturers prioritize high-bandwidth memory (HBM) for the AI sector.