Nvidia CEO Jensen Huang explains the architecture of Vera Rubin at the Computex trade show in Taipei, Taiwan, on July 1. Analysts say Nvidia retains room for further gains even as semiconductor stocks have fallen in recent sessions. [Reuters]
Nvidia CEO Jensen Huang explains the architecture of Vera Rubin at the Computex trade show in Taipei, Taiwan, on July 1. Analysts say Nvidia retains room for further gains even as semiconductor stocks have fallen in recent sessions. [Reuters]

A shortage of memory chips has pushed even Nvidia to raise prices on its AI server systems by more than 15 percent. The surge in prices for high bandwidth memory (HBM) and server DRAM — both essential to AI accelerators — is significantly strengthening the pricing power of memory manufacturers such as Samsung Electronics and SK Hynix, analysts say.

Nvidia recently notified major customers of plans to raise prices on systems equipped with its AI chips by more than 15 percent, Bloomberg reported Saturday.

The increases are set to apply to systems shipped from early next year, including those featuring Nvidia's next-generation flagship products, Vera Rubin and Grace Blackwell. The size of the hike will vary depending on the product generation and memory configuration, according to the report.

Server manufacturers that supply Nvidia-based systems have also informed major data center operators — including Microsoft, Google and Oracle — of the coming price increases. Nvidia has not issued an official comment on the reports.

The immediate driver behind the price hikes is a sharp rise in memory semiconductor prices.

High-performance DRAM, including HBM, is essential for Nvidia's AI accelerators to handle large-scale AI computations at speed. Because a single AI server requires far more memory capacity than a conventional server, demand for memory grows in step with AI infrastructure investment.

Supply, however, is not keeping pace. Samsung Electronics, SK Hynix and Micron — the three dominant DRAM makers — are all ramping up production of HBM and server DRAM, but rapid expansion of AI data center investment means the shortage is persisting.

Market research firm TrendForce projects that contract prices for server DRAM will rise 13 to 18 percent in the third quarter of this year from the previous quarter. As HBM production expansion eats into capacity for conventional server DRAM, the ongoing supply shortfall is giving memory manufacturers greater control over pricing, analysts say.

The memory crunch is also shaping Nvidia's next-generation product design. According to TrendForce, Nvidia is considering diversifying the HBM configuration of its upcoming Rubin Ultra chip — adding 8-stack HBM4E and HBM4 options alongside the originally planned 12-stack HBM4E — in anticipation that the DRAM shortage could extend through 2027.

Even Nvidia, widely regarded as the dominant force in the AI chip market, has found itself unable to absorb rising memory costs and has begun passing them on to customers. Bloomberg said the price increases illustrate how much pricing leverage suppliers have gained in a memory market controlled by a handful of companies — Samsung Electronics, SK Hynix and Micron.

Apple, Qualcomm and other major IT companies have already raised product prices or warned of growing cost pressures, citing higher semiconductor and memory prices. A memory supply crunch that began with AI infrastructure is now pushing up prices across smartphones and PCs and into the AI server market.

Amazon, Microsoft, Google, Meta and other global technology giants are accelerating development of their own AI accelerators to reduce dependence on Nvidia. But because proprietary chips also require large volumes of HBM and server DRAM to deliver full performance, reliance on memory suppliers such as Samsung Electronics and SK Hynix is expected to continue for now.

Nvidia's price increases will add to the financial burden of building AI data centers globally, where costs are already enormous. Power procurement, project delays, labor shortages, rising financing costs and community opposition are all cited as obstacles to data center expansion — and higher prices for core AI server hardware will only deepen the investment burden.

If AI demand holds through next year, memory prices could remain elevated for an extended period. TrendForce forecasts that demand for HBM and server memory will continue to outpace supply growth, keeping DRAM supply tight through 2027.


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