AI boom tests GOP’s midterm affordability pitch as price pain spreads

The article warns an AI-driven memory chip shortage is spilling into consumer markets, raising prices and threatening Republicans’ 2026 affordability message. Reports say roughly 70% of high-end memory chips are being directed to data centers for AI, squeezing supply for laptops, smartphones and autos. Microsoft blamed higher memory/component costs for laptop price increases; smartphone shipments are down about 6% year-to-date. Lawmakers and strategists urge expanded domestic chip production and reforms to the CHIPS Act to relieve supply constraints. The supply squeeze risks higher consumer costs, potential auto assembly slowdowns, and political fallout tied to inflation and the midterm agenda.