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Flash Drive Prices Surge 70% in May as AI Demand Pushes Memory Chip Costs

2026-06-11 11:01:56

CHIP-0.56%

According to Federal Reserve economists, flash drive prices surged approximately 70% since November 2025, with the broader Computer Software and Accessories category jumping a record 14.5% year-over-year in May, according to the Consumer Price Index report released Wednesday. The spike is largely driven by soaring demand from AI data centers for Flash memory chips used in solid state drives (SSDs). Federal Reserve analysis noted that global prices for Flash memory chips have more than doubled over the past year, citing data center investment requirements for AI training as the primary factor. The deflationary trend that had characterized this product category for 25 years ended in November 2025.

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