HP says RAM now accounts for more than a third of its PC costs

Engadget

by Andre Revilla

February 25, 2026

AI-Generated Deep Dive Summary

HP has revealed that RAM now accounts for 35% of its PC costs, a significant increase from previous estimates of 15-18%. Karen Parkhill, HP's CFO, highlighted this surge during an earnings call, attributing it to AI-driven demand overwhelming limited supply. In response, the company is considering price hikes and exploring new suppliers to mitigate rising expenses. The AI boom has intensified competition for PC components, particularly RAM and GPUs, causing shortages and inflated prices. Companies like Samsung have warned of potential price increases due to memory shortages, while others, such as Micron, have shifted focus to B2B supply, neglecting consumer markets. This demand-supply imbalance is exacerbating financial pressures across the tech industry. HP interim CEO Bruce Broussard acknowledges the challenges but remains optimistic about market stabilization. HP is actively seeking new suppliers and

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Originally published on Engadget on 2/25/2026