Kingston, a major player in memory and storage solutions, has issued a dire warning about the escalating shortages of Solid State Drives (SSDs) and Random Access Memory (RAM). The company predicts that the current supply constraints will intensify in the coming weeks, leading to further price increases for consumers and businesses alike. This situation is largely attributed to a dramatic surge in NAND flash costs, which form the backbone of SSD technology.
Key Takeaways
- NAND flash prices have surged by 246% in 2025, with 70% of that increase occurring in the last 60 days.
- Kingston advises consumers to upgrade their SSDs and RAM sooner rather than later, as prices are expected to continue rising.
- The AI boom is a significant driver of increased demand for storage solutions.
- Even traditional Hard Disk Drives (HDDs) are experiencing price hikes.
Escalating NAND Flash Costs
Cameron Crandall, Kingston’s datacenter SSD business manager, revealed in a podcast interview that NAND flash prices have seen an unprecedented increase of 246% throughout 2025. A staggering 70% of this surge occurred within the last two months alone. Given that NAND flash constitutes approximately 90% of the bill of materials for SSDs, these rising costs are inevitably translating into higher prices for finished products. Kingston reports that many of these price hikes are already integrated into the supply chain, leaving little room for negotiation.
Advice to Upgrade Now
Kingston is strongly advising consumers and businesses not to delay upgrades for their SSDs and RAM. Crandall emphasized that current retail prices do not yet fully reflect the latest cost increases, and further hikes are anticipated in the next 30 to 60 days. He stated that waiting will likely result in paying more for the same components. This advice comes amidst uncertainty in the market, with OEMs reportedly increasing their NAND flash contracts to mitigate risks.
Broader Market Impact
The current storage crunch is not limited to SSDs. Traditional Hard Disk Drives (HDDs) are also experiencing price increases, with reports indicating a roughly 4% quarter-over-quarter rise for the fourth quarter of 2025, marking the largest increase in two years. This widespread pressure on storage components is exacerbated by the ongoing AI boom, which is driving significant demand for data storage solutions across both consumer and enterprise sectors. Some industry observers suggest that the severity of the current situation is unprecedented, with some professionals in the field having never witnessed such market conditions in their careers.
Future Outlook
While some analysts had predicted a stabilization of prices within the next six to eight months, Kingston’s outlook suggests a more prolonged period of price increases. Memory market cycles indicate an upswing, and manufacturers are hesitant to invest heavily in new production facilities due to the potential for the AI bubble to burst. Although Kingston does not foresee the shortage lasting a decade, they do not expect prices to decrease anytime soon. For those planning an upgrade, the recommendation remains to act sooner rather than later.
Via Tom’s Hardware
