HP warns RAM now makes up 35% of the cost of building a PC

AI Economy: The memory shortage triggered by the AI boom is creating unprecedented challenges for PC makers, but HP executives say they have seen similar disruptions in the past. Customers may need to adjust to this new reality, as system configurations are likely to be significantly affected by ongoing supply chain constraints.

Over the past few months, RAM chips used in new PCs have nearly doubled in price. According to HP Inc. CFO Karen Parkhill, memory's share of the PC bill of materials has risen from 15 percent to 18 percent, and now to roughly 35 percent. And that may be only the beginning, as Parkhill expects an even greater pricing impact in the second half of the fiscal year.

Parkhill and other HP executives made the remarks during the company's latest earnings call, where they shared updated financial results for the first quarter of fiscal 2026. One ...