Artificial intelligence is reshaping the global memory chip market, and Nigeria is starting to feel the ripple effects. DRAM and NAND chips, the core components in smartphones, laptops, and even cars, are now in short supply. Prices have shot up. DRAM has climbed more than sixfold in recent months. NAND prices are following suit.

This is no temporary hiccup. Chip manufacturers are redirecting production towards high-bandwidth memory for AI accelerators, leaving fewer chips for the devices ordinary consumers rely on. Analysts call it a memory “supercycle.” Tim Archer, CEO of Lam Research, put it plainly at a conference in South Korea: “Demand ahead of us will overwhelm everything we have seen before.” Tech leaders from Elon Musk to Apple’s Tim Cook have warned the world is facing a bottleneck that could ripple through profits, shipments, and prices alike.

Chinese smartphone brands are already recalibrating. Xiaomi, Oppo, and Transsion have cut their 2026 shipment targets, with Oppo reducing forecasts by up to 20 per cent. SK Hynix shares have surged 150 per cent on AI-driven demand, while companies producing consumer electronics are feeling the squeeze.

In Nigeria, where nearly all smartphones are imported, the effects are tangible. Traders in Computer Village, Lagos, report cautious restocking. Some are hoarding inventory, expecting prices to rise. Others are holding back, unwilling to risk large purchases in a volatile market. Mid-range devices, the backbone of the Nigerian market, may see the sharpest impact. Families replacing old phones or parents buying devices for children might pay more, or wait longer for deliveries.

It is a delicate balance. Smartphones are not luxuries here; they are tools for work, school, and commerce. A delay in shipments or a price increase can affect a street vendor running their business on WhatsApp, a student relying on online learning, or a professional replacing a broken device.

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The crisis also exposes something about Nigeria’s tech ecosystem. We depend on imports, yet global market forces are beyond local control. The high demand for AI memory, while exciting for innovation, casts a shadow on affordability. Even as investments pour into the global AI infrastructure, Nigerian consumers and traders watch the numbers nervously, aware that global surges translate into local price hikes.

Analysts expect a gradual rise rather than a sudden shock for now. Smartphones will still be available, but prices may climb steadily in the months ahead. Those planning to buy mid-range phones, or sell them, will have to factor in higher costs. In a market where access to a reliable device is essential for daily life, the story of AI and chips is not just about technology; it is about how global trends touch ordinary Nigerians.

Meiza Nigeria