The consumer PC hardware market is reportedly heading toward one of its biggest downturns in years. According to a new report from DIGITIMES, major Taiwanese motherboard brands have sharply reduced their shipment targets for 2026 as rising hardware prices and weak demand continue to hurt the industry. 

Companies including ASUS, Gigabyte, MSI, and ASRock are all expected to see major shipment declines next year.

AI Demand Is Hurting Consumer Hardware Supply

One of the biggest reasons behind the slowdown is the rapid expansion of the AI industry. Chipmakers like Intel and AMD are reportedly prioritizing production of high-profit server processors such as Xeon and EPYC chips instead of consumer CPUs. As a result, desktop and laptop processors are facing supply shortages and price increases. Reports also suggest that additional CPU price hikes may arrive later in 2026.

RAM and Storage Prices Continue to Rise

Memory prices have also increased sharply over the past year. Reports claim RAM and storage now account for over 30% of a PC’s total build cost, compared to around 15% previously. Because of these rising costs, many laptop makers have increased prices by 10–20%, while some affordable models are now offering weaker specifications to keep prices under control. This has reduced consumer purchasing power and slowed upgrade demand.

GPU Market Shows Little Excitement

The gaming GPU market is also struggling to attract buyers. NVIDIA has not introduced major RTX 50 series upgrades in 2026, while rumors suggest the RTX 60 series may not launch until 2028. GPU prices also remain high in many regions, making gaming PC upgrades less attractive for consumers. Many users are reportedly choosing to keep their older PCs longer instead of spending heavily on new hardware.

Motherboard Brands Face Shipment Declines

ASUS is reportedly struggling to maintain even 10 million motherboard shipments in 2026 after shipping around 15 million units in 2025. Gigabyte, MSI, and ASRock are also expected to see major declines in motherboard sales as the overall DIY PC market weakens further.

AI Servers Become the Main Revenue Driver

Despite weaker consumer PC sales, companies are still expected to remain profitable thanks to booming AI server demand. AI servers are now generating significantly more revenue than traditional consumer hardware, helping brands offset declining motherboard and graphics card shipments.

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