Nvidia CEO Jensen Huang sees high memory chip demand lasting until 2029
Wall Street fears a memory chip glut.
The short version
- Nvidia chief Jensen Huang sees demand lasting until 2029.
- Micron shares are up roughly 172 percent this year.
- SK Hynix has jumped about 81 percent.
Why it matters to you. For your business or portfolio, it means the artificial intelligence hardware squeeze is rewriting the rules of a notoriously cyclical market.
Wall Street is sweating over the future of memory chips, but Nvidia CEO Jensen Huang says the boom is far from over. According to Yahoo Finance, Huang told CNBC that he Does not foresee a memory glut until at least 2029, a much longer horizon than most analysts expect.
Memory makers like Micron and SK Hynix have seen their shares soar this year as artificial intelligence data centers devour massive amounts of chips. For decades, the chip industry has swung wildly between shortages and gluts as manufacturers overbuilt capacity. Recently, memory stocks took a hit after reports of new competition and a potential flood of new supply from Chinese chipmaker ChangXin Memory Technologies and South Korean industry experts.
But Huang pushed back during a recent conference in Berlin, noting that you can always use more memory in artificial intelligence systems. Unlike past cycles, major chipmakers have signed unprecedented three- to five-year contracts with their biggest customers to lock in prices and volumes.
Counterpoint Research forecasts that DRAM prices could drop by 23 percent in 2028, but that would still leave them 230 percent higher than 2025 levels. SK Hynix also plans to triple its wafer capacity by 2034 to keep up with relentless orders.
Photo: NVIDIA
