economy
What the rise in flash drives tells us about inflation (and AI)
AI investment continues to seep into some of the more mundane corners of the economy.
TL;DR
- Flash drive prices have surged, ending decades of deflation.
- Prices for 'computer software and accessories' jumped 14.5% in May compared to the previous year.
- This price increase is largely a byproduct of the data center investment boom for AI training.
- Global prices for Flash memory chips have more than doubled in the past year.
- The average price for the 20 best-selling flash drives increased about 70% since November 2025.
- Memory stock prices for companies like Sandisk, Micron, Seagate Technology, and Western Digital have performed well due to these trends.