AI is killing the PC upgrade cycle — and motherboard sales are tanking

PC motherboard sales are expected to crash by over 25% year-over-year in 2026, as reported by Tom's Hardware. The decline stems from PC users delaying upgrades amid AI-driven price surges for memory, storage, and processors.

Why are PC motherboard sales collapsing?

According to Tom's Hardware, the motherboard market downturn is driven by AI demand and component pricing. Chipmakers are prioritising AI processors over consumer PC components, creating supply constraints that drive up prices for memory, storage, and processors.

When building a PC costs significantly more due to inflated component prices, users simply wait. The thing is, motherboards don't sell in isolation — they're part of complete system builds. If RAM, SSDs, and CPUs are all more expensive, fewer people upgrade their entire systems.

This creates a knock-on effect where motherboard manufacturers face reduced demand despite their products not being the primary cost driver. It's a market dynamics issue rather than a motherboard quality problem.

Which manufacturers are taking the biggest hit?

ASUS faces the steepest decline, projected to sell 5 million fewer motherboards in 2025 compared to previous years. That's a substantial drop for the world's largest motherboard manufacturer, representing hundreds of millions in lost revenue.

Gigabyte, MSI, and ASRock are also expected to see reduced sales, though specific figures weren't provided. These four companies collectively dominate the motherboard market, so their combined decline signals a genuine industry-wide problem rather than isolated issues.

AI demand was already affecting prices earlier this year, component costs were already elevated.

What this means for UAE PC builders

The global motherboard sales decline signals broader changes coming to the UAE PC market. Local retailers will likely face reduced inventory options and higher wholesale costs, which typically translate to increased consumer prices.

The UAE's challenging climate for PC cooling already makes system building more complex — now it's becoming more expensive too.

This trend coincides with increasing business demand for AI PCs, creating additional pressure on component supply chains that serve both consumer and enterprise markets in the region.

The AI factor driving component prices up

The semiconductor industry's pivot toward AI is reshaping the entire PC ecosystem. AI development in 2025 has created unprecedented demand for high-performance chips, memory, and storage — the same components that power enthusiast PCs.

Chipmakers earn higher margins on AI processors than on consumer PC chipsets.

Memory and storage manufacturers face similar pressures across the supply chain.

Impact on UAE component pricing

While specific UAE pricing adjustments haven't been announced, the global trend suggests component costs will increase throughout 2025 and 2026.

Some builders may use integrated GPU solutions as discrete graphics cards face similar supply pressures from AI workload demands.

Frequently Asked Questions

Why are PC motherboard sales expected to decline?

Sales are falling because PC users are delaying upgrades due to AI-driven price surges for memory, storage, and processors. When other components cost more, fewer people build complete systems.

Which motherboard manufacturers are most affected?

ASUS faces the biggest impact with 5 million fewer projected sales in 2025. Gigabyte, MSI, and ASRock will also see reduced sales volumes.

How does AI affect PC component prices?

High demand for AI chips causes manufacturers to prioritise AI processors over consumer components, creating supply constraints that drive up prices for memory, storage, and processors used in PC builds.

Will this affect PC prices in the UAE?

Yes, the global component shortage and price increases will likely impact UAE retailers, potentially leading to higher PC component prices and longer wait times for specific models.

Written by

Share

Copied