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Volume 55. No. 02
February 2026
ISSN 2632 573X
Editorial
Waiting for the AI bubble to burst
I hope you aren’t planning to upgrade your computer any time
soon, given the explosion in memory prices over the last month or
so.
It seems that the AI bubble (and it surely is a bubble) is doing to
the memory market the same thing it did to the GPU (graphics
processing unit) market over the last few years – gutting
inventories and driving prices through the roof.
This is going to get worse before it gets better. RAM prices (and
storage prices, to some extent) have always been cyclical. Someone
builds a new factory, the price drops. The factory goes out of
business, prices rise. But this is the worst it has been in a very long
time.
We upgraded most of our computers around 2020-2022. I was
starting to think about whether it’s maybe time to get a new
workstation soon, but that thought has evaporated now that a
couple of sticks of DDR5 RAM cost more than a whole computer
did a few months ago.
Since early 2023, I have been convinced that there will be
situations where AI (or machine learning, if you prefer) will
be incredibly useful. It has also become pretty clear that the
applications of AI are, at least for now, quite limited due to its
unreliability.
As a programming assistant, AI can be extremely useful. It is
undoubtedly capable of reducing the time spent on repetitive
tasks. But it can’t replace a human in most roles yet, and possibly
won’t for a long time. So the current “stick AI in everything” push
is getting a bit ridiculous.
Unfortunately, the bubble is still inflating. When it does pop,
hopefully computer part prices will come back down to Earth.
And maybe we can start to get a bit more realistic about what this
technology can and can’t do. I think we’re more likely to put it to
good use if we can be honest about its limitations as well as praise
its capabilities.
So, for now, I guess I will be writing these editorials on the
computer that I put together a few years ago. Hopefully you can
stick with yours too, until prices go back to normal. It will have to
happen eventually!
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Nicholas Vinen, Electron Publishing (Australia)*
Publisher & Editor, Practical Electronics Magazine
* a division of Silicon Chip Publications Pty Ltd.
Practical Electronics | February | 2026
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