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Memory chips are being diverted toward lucrative AI data centers

By Mark Huffman of ConsumerAffairs

• A shortage of memory chips is pushing up the cost of laptops and desktop computers, with Gartner projecting PC prices will rise about 17% in 2026.

• The artificial intelligence boom is a major reason: chipmakers are directing more production capacity toward high-performance memory for AI servers and data centers.

• Consumers shopping for a computer may face higher prices, fewer inexpensive models and less memory and storage for their money.

Consumers who have recently shopped for a new laptop may have noticed that computers aren't getting cheaper the way technology products often do.

One big reason is hiding inside the machines.

A global shortage of memory chips is raising manufacturers' costs, and increasingly those costs are being passed along to consumers. The shortage is being fueled in large part by the enormous appetite for chips needed to build artificial intelligence infrastructure.

Research firm Gartner estimates that the combined price of DRAM memory and solid-state-drive storage will surge about 130% by the end of 2026 compared with 2025. Gartner expects that increase to push average PC prices about 17% higher.

The squeeze is already showing up in manufacturers' results. HP recently reported higher PC revenue despite selling fewer units, with higher prices helping offset rising memory and storage costs. The company also warned that those component costs are expected to increase further.

Why AI is competing with your laptop

This isn't primarily a shortage of the processors made by companies such as Intel and AMD. The biggest problem involves memory particularly DRAM, which computers use as working memory, and NAND flash, which is used in solid-state drives.

AI data centers consume staggering amounts of memory. Chip manufacturers including Samsung, SK Hynix and Micron have consequently devoted more resources to high-bandwidth memory and other products used in servers, where demand and profit margins are strong.

That leaves less manufacturing capacity available for ordinary consumer products.

TrendForce said major DRAM manufacturers are prioritizing server production, squeezing the supply available for consumer and PC memory. It expects conventional DRAM contract prices to rise another 13% to 18% during the third quarter, while NAND flash prices are forecast to increase 10% to 15%.

In other words, consumers buying computers are indirectly competing with companies spending billions of dollars to build AI data centers.

Budget computers could be hit hardest

The impact may be especially noticeable at the inexpensive end of the PC market.

Memory represented about 16% of the cost of producing a PC in 2025, according to Gartner. It expects that share to reach 23% as memory prices increase.

That's a difficult problem for manufacturers of budget laptops because those machines already have thin profit margins. Manufacturers have less room to absorb higher component costs without raising retail prices.

Gartner goes so far as to predict that the sub-$500 PC market could effectively disappear by 2028 if current trends continue.

Manufacturers have another option besides raising prices: reducing specifications.

A laptop that might previously have included more RAM or a larger SSD could instead be sold with less memory or storage at the same price. TrendForce says rising memory costs are already putting pressure on manufacturers to limit specifications and delay upgrades.

Consumers are holding onto computers longer

Higher prices appear likely to affect how often Americans replace their PCs.

Gartner forecasts worldwide PC shipments will fall 10.4% this year and estimates consumers will extend the useful life of their computers by about 20% as prices rise.

That could create an unusual cycle: weak consumer demand normally causes semiconductor prices to fall. But this time, strong AI demand is absorbing much of the available capacity even as consumers pull back.

Gartner has said shortages of DRAM and NAND memory could extend into the second half of 2027. TrendForce also expects AI demand to keep DRAM supplies tight next year, although NAND flash supplies could begin loosening during the second half of 2027 as additional manufacturing capacity comes online.

What computer shoppers can do

Consumers who need a computer now may want to pay closer attention to specifications rather than simply comparing model prices. A discounted laptop isn't necessarily a bargain if it comes with significantly less RAM or storage than similarly priced machines did a year ago.

Machines with 16GB of RAM and at least a 512GB SSD may provide a better useful life than stripped-down models, particularly as software and AI features become more demanding.

Shoppers who don't need the latest model may also find better value in previous-generation computers, refurbished PCs or clearance inventory purchased before the latest component price increases worked their way through the supply chain.

For consumers who can wait, however, the decision is more complicated. Memory prices aren't guaranteed to remain this high indefinitely, but current industry forecasts suggest the computer industry's chip shortage is unlikely to disappear soon.

Consumers are unlikely to receive compensation

By Mark Huffman of ConsumerAffairs

• Walmart will pay $50 million to settle federal allegations that its pharmacies illegally filled thousands of prescriptions for opioids and other controlled substances.

• The Justice Department says Walmart employees sometimes filled prescriptions despite warning signs involving suspected pill mill doctors, unusually high doses and requests for early refills.

• The settlement also requires Walmart to strengthen pharmacy oversight, including monitoring dispensing patterns and creating a hotline for employees and patients to report suspected illegal activity.

Walmart has agreed to pay $50 million to settle a long-running federal lawsuit accusing the nation's largest retailer of improperly filling prescriptions for opioids and other controlled substances.

The Justice Department and Drug Enforcement Administration announced the agreement, resolving allegations that Walmart pharmacies violated the federal Controlled Substances Act by filling thousands of prescriptions that should have been rejected.

The settlement brings an end to a case dating back nearly six years and adds another chapter to efforts by federal, state and local governments to hold pharmacies, drug manufacturers and distributors responsible for their alleged roles in the nation's opioid epidemic.

Importantly, the settlement does not amount to an admission of wrongdoing. The Justice Department said the claims being resolved are allegations and that there has been no determination of liability. Walmart said it was pleased to put the matter behind it and would continue supporting its pharmacists and their work providing patient care.

What the government alleged

The Justice Department filed its original lawsuit against Walmart in December 2020, alleging that the retailer repeatedly violated the Controlled Substances Act beginning in 2013.

Federal officials alleged Walmart pharmacists filled prescriptions even when there were warning signs suggesting they might not have been issued for a legitimate medical purpose.

Those red flags allegedly included prescriptions from doctors suspected of operating pill mills, dangerous combinations of opioids with other drugs, repeated prescriptions for unusually high doses and requests to refill controlled substances earlier than expected.

The government also alleged that Walmart's own pharmacists sometimes alerted the company's compliance operation about suspicious prescribers by submitting thousands of forms documenting their refusal to fill prescriptions.

According to the Justice Department, Walmart's corporate compliance team knew that some prescribers were suspected of operating pill mills but failed to adequately respond to pharmacists' concerns.

When the lawsuit was originally filed, the government also accused Walmart, which formerly distributed controlled substances to its own pharmacies, of failing to report suspicious drug orders to the DEA. At the time, federal officials said potential civil penalties could have totaled billions of dollars if the company were found liable.

Walmart will have to make changes

The agreement involves more than the $50 million payment.

Walmart has entered into a memorandum of agreement with the DEA requiring additional safeguards governing how its pharmacies dispense controlled substances.

Among other things, Walmart must establish a hotline that employees and patients can use to report suspected illegal dispensing. The retailer must also proactively monitor dispensing patterns at its pharmacies for signs of potentially illegal activity and maintain a process for evaluating doctors and other prescribers suspected of improper prescribing.

This $50 million settlement makes clear that pharmacies have a responsibility to identify and prevent the unlawful dispensing of controlled substances, DEA Assistant Administrator Cheri Oz said in announcing the agreement.

Not Walmart's first opioid settlement

The federal settlement is separate from a much larger agreement Walmart previously reached with states, local governments and Native American tribes.

In 2022, Walmart agreed to a nationwide settlement worth more than $3 billion to resolve thousands of opioid-related claims. Walmart's financial filings show that it ultimately accrued about $3.3 billion for those settlements, including remediation payments, legal fees and other costs.

For consumers, the newest Walmart agreement is unlikely to produce individual payments. The $50 million resolves the federal government's Controlled Substances Act claims rather than establishing a consumer compensation fund.

Its more visible impact may instead be behind the pharmacy counter, where Walmart will face additional requirements designed to identify suspicious prescribing and dispensing before controlled substances reach patients.

The latest exchange of attacks makes the gas price outlook less certain

By Mark Huffman of ConsumerAffairs

• Oil prices jumped more than 2% Monday after U.S. forces struck Iranian rocket launchers and Iran retaliated, renewing fears that the conflict could disrupt oil shipments through the Strait of Hormuz.

• Brent crude moved back above $90 a barrel, while U.S. West Texas Intermediate crude climbed above $85, reversing some of last weeks decline.

• American drivers are likely to feel the impact if oil remains elevated: the national average for regular gasoline is already about $4.08 a gallon, and another sustained rise in crude could push pump prices higher in September.

A renewed outbreak of fighting between the United States and Iran has quickly spilled into the energy markets, pushing crude oil prices sharply higher and raising the prospect of another increase in gasoline prices for American motorists.

Oil prices rose more than 2% in early trading Monday after U.S. forces struck two Iranian rocket launchers on Larak Island in the Strait of Hormuz on Sunday. It was the first known U.S. military strike on Iran since late July. Iran responded by attacking two U.S. bases in Jordan, according to Iranian media.

Brent crude, the international oil benchmark, climbed about 2.5% to roughly $90.30 a barrel early Monday, while U.S. West Texas Intermediate crude rose more than 2% to around $85.20. Later trading pushed oil even higher, with Brent topping $91 at one point.

The reaction underscores just how sensitive oil markets remain to developments involving Iran.

The biggest concern isn't necessarily Iran's own oil production. It's the Strait of Hormuz.

Why the Strait matters

The narrow waterway between Iran and Oman has historically carried about one-fifth of the world's oil supplies. Any military action that threatens tankers or further restricts shipping can quickly add a "risk premium" to the price of crude.

Shipping through the strait has already been sharply reduced during the conflict. Reuters reported Monday that the number of visible commodity vessels passing through the waterway over the weekend had fallen to about five a day as shipping companies remained wary of attacks.

The U.S. Energy Information Administration estimated earlier this month that disruptions connected with the Strait of Hormuz resulted in about 5.5 million barrels per day of oil production being shut in during July. EIA expects oil flows to recover gradually, but it warned that normal production and trade patterns may not return until early 2027.

That means even relatively limited military confrontations can move prices.

Analysts told Reuters that oil could remain in roughly an $85-to-$95-a-barrel range without greater clarity about the strait. A sustained disruption to tanker traffic or attacks on major oil infrastructure could send prices significantly higher.

What it means for gasoline prices

For consumers, the renewed oil-price increase comes at an especially bad time.

AAA says the national average price of regular gasoline is about $4.08 a gallon, compared with about $3.21 a year ago. August is on track to be the most expensive August on record for U.S. gasoline prices.

Crude oil is the largest single component of the retail price of gasoline, so a sustained increase in oil prices normally works its way through refineries and wholesale markets before showing up at service stations.

That doesn't mean Monday's jump will immediately produce a corresponding increase at the pump. Oil prices would have to remain elevated for several days or rise further before much of the increase would likely reach consumers.

There is also a seasonal factor working in motorists' favor. Gasoline demand normally begins declining after the summer driving season, and refineries eventually switch to less expensive winter-grade gasoline. Those factors can put downward pressure on prices during the fall.

But the Iran conflict could overwhelm some of that seasonal relief.

Some analysts say that if Brent remains above $90 and moves toward $95, motorists could see gasoline prices begin climbing again rather than falling after Labor Day. A more serious interruption of oil traffic through the Strait of Hormuz would pose a much greater risk and could send U.S. gasoline prices substantially higher.

Secondhand shopping has moved beyond dusty thrift-store racks to booming resale sites

• Used doesnt always mean cheap: Compare secondhand prices with current retail and sale prices before assuming youve found a bargain.

• Inspect before you buy: Ignore the size tag, check actual measurements, and look closely for costly problems like broken zippers, stains, holes, and worn-out soles.

• Compare resale sites: Check ThredUp, Poshmark, and Depop, then factor in shipping and fees to make sure youre actually getting the best deal.

Thrift stores are having another moment.

Secondhand stores and online resale marketplaces are seeing renewed interest, particularly among younger shoppers looking for relief from higher prices in an attempt to stretch their clothing budgets.

But there's an important distinction bargain hunters should remember: Used doesn't automatically mean cheap.

A vintage Levi's jacket that originally landed in a thrift store for $12 might be re-listed online for $75. A pair of sneakers could cost nearly as much used as they do new. And shipping and marketplace fees can turn an apparent bargain into something much less impressive.

So, whether you're walking into Goodwill or scrolling from your couch, here's how to thrift smarter.

Know the price before you go hunting

For consumers, the thrill of thrifting often meets the danger of assuming anything secondhand must be a bargain.

Before buying a recognizable brand thats doesnt scream deal, spend 30 seconds searching for the same or similar item online. Check the manufacturer's current price as well as what comparable used items are actually selling for.

That's particularly important with brands that routinely go on sale. A used Carhartt shirt priced at $19 isn't impressive if the retailer frequently sells a new one for $29.

Pro tip: Search the exact brand and style number when you can find it on the tag. That's considerably more accurate than searching something generic like "Levi's men's jeans."

Look past the size on the tag

Anyone who has owned clothes for more than a few years knows a medium isn't always a medium.

Sizing can change drastically between brands and eras like 80s, 90, and Y2K. Also, its fairly common for vintage clothing to shrink or stretch after years of washing and wearing.

When buying online, exact measurements matter much more than the letter or number printed on the tag. For pants, ask for the actual waist, rise, and inseam. For shirts and jackets, chest width and length can save you from an expensive mistake.

Pro tip: Measure a shirt, jacket, and pair of pants you already own that fit perfectly. Save those measurements in your phone and use them as your personal thrift-shopping cheat sheet.

Don't be afraid of the men's (or women's) section

Thrift-store organization isn't an exact science and stuff can get spread all over the store.

A men's vintage sweater might end up in women's clothing. An oversized women's jacket could be exactly what a male shopper is looking for.

The same applies to sizes. People donate clothes that have shrunk, been altered, or were incorrectly sized to begin with.

If you're serious about finding something good, browse beyond the rack that supposedly belongs to you.

Inspect the expensive-to-fix stuff first

A missing button isn't necessarily a deal breaker, but something like a broken zipper on an expensive jacket just might be.

Before buying, get in the habit of inspecting the areas of items that are most likely to hide any problems. Specifically, think about zippers, cuffs, collars, underarms, crotch seams, and the soles of shoes.

Also, I like to hold clothing up to a bright light as it reveals any small holes and stains you might otherwise miss.

And while it sounds a little gross, give it a sniff. Smoke, mildew, and some strong odors can be surprisingly difficult to remove and can be a deal breaker.

Pro tip: Ask yourself whether you'd still buy the item if fixing it added $20 to the price. If the answer is no, put it back.

Shopping vintage online? The big three work very differently

Online resale eliminates the digging-through-racks part of thrifting, but each marketplace has a different personality.

Here are three of the biggest options and where each one shines.

1. ThredUp

ThredUp is best if you want online thrifting to feel like regular shopping. It's also probably the closest of the three to shopping at a conventional online clothing store.

The company describes itself as one of the world's largest online consignment and thrift stores and focuses heavily on women's and children's clothing, shoes, and accessories. It advertises merchandise for as much as 90% below estimated retail prices.

• Best for: Shoppers who don't want to negotiate with individual sellers and want to browse a huge, organized secondhand inventory.

• Top brands: ThredUp is especially good for shoppers who love J.Crew, LOFT, Banana Republic, Lululemon, Free People, Lilly Pulitzer, and Madewell.

• Watch out for: The "estimated retail" discount. A dress displayed as 70% off its estimated original price doesn't necessarily mean it's 70% cheaper than what you'd pay for a comparable dress today.

• Money-saving move: Search by the brands you already buy and know exactly how they fit. That way youll avoid any weird sizing differences that often comes with brands youre not super familiar with.

2. Poshmark

Poshmark is best for bargain hunters willing to negotiate and works much more like a giant collection of individual closets.

Sellers photograph and list their own merchandise, and buyers can either purchase at the listed price or make an offer. Poshmark says its community has more than 130 million registered users in the U.S. and Canada and has sold more than 350 million items.

The negotiation feature is where savvy shoppers can potentially save. Poshmark allows private offers and counteroffers, and shoppers buying multiple items from the same seller can create a bundle, which can also reduce shipping costs.

• Best for: Specific brands, shoes, handbags, jeans, and other items where you know exactly what you're looking for.

• Top brands: Theyre known for Coach, Lululemon, Louis Vuitton, Chanel, Gucci, Nike, Michael Kors, Free People, Zara, and Levis.

• Watch out for: Returns are pretty limited when shopping on Poshmark. For example, most purchases are considered final sale except if the seller is at fault for an inaccurate description or quality issue. So don't assume you can return something simply because it doesn't fit or you dont like it.

• Money-saving move: Don't immediately hit "Buy Now." Always like the item first or make a reasonable offer. Poshmark sellers can send discounts to people who have liked their listings, and price drops can trigger notifications.

3. Depop

Depop is best for vintage, unusual pieces and for those who like to hunt for the popular trends. It feels less like an online thrift store and more like thrifting crossed with your social media feed.

The peer-to-peer marketplace has become particularly associated with vintage clothing, streetwear, Y2K styles, and one-of-a-kind pieces. Depop says it now has more than 56 million registered users.

Similar to eBay, sellers list and ship all their own merchandise. As a shopper, you can easily message sellers with specific questions and make purchases directly through the platform. Depop says U.S. sellers currently don't pay a selling fee, although payment-processing charges still apply; U.S. buyers can face a marketplace fee of up to 5% of the item's price plus a fixed amount of up to $1.

• Best for: Shoppers looking for vintage fashion, unusual pieces and styles that aren't hanging on every mall rack.

• Top brands: Look specifically for Abercrombie & Fitch, Adidas, Carhartt, Dickies, Dr. Martens, Levis, Nike, Patagonia, Ralph Lauren, Supreme, and The North Face.

• Watch out for: "Vintage" can be used pretty loosely online. A seller describing something as vintage doesn't necessarily make it rare or valuable.

• Money-saving move: Search the item's brand and description on other resale platforms before buying. That $80 "rare vintage" sweatshirt may be sitting on Poshmark for $35.

Search resale sites before buying new

Here's where secondhand shopping can become genuinely useful even if you don't consider yourself a thrift shopper. Before buying something new, run the exact item through Poshmark, Depop and ThredUp.

This works particularly well for clothes people frequently buy and barely wear. Stuff like special-occasion dresses, jackets, premium denim, children's clothing, and trendy pieces that may have spent more time in someone's closet than on their body.

You stand a great chance of finding the exact item you were about to buy new for considerably less.

Which online resale site should you use?

If you want the simplest experience, start with ThredUp. If you're hunting for a particular brand or item and enjoy negotiating, try Poshmark. If you're after vintage, streetwear, or something unusual, Depop is probably the most interesting place to dig.

But don't limit yourself to one. The beauty of online thrifting is that comparison shopping takes seconds. Search the same item across several platforms, factor in shipping and fees, check the measurements and inspect the photos carefully.

Because the goal isn't simply to buy something used, it's to buy something you'll actually wear for a price significantly less than retail.