As leaders in the Artificial Intelligence (AI) revolution, Nvidia (NASDAQ: NVDA ) A closer look at the tech industry for insight into what’s next. A company’s graphics processing units (GPUs) are at the heart of AI processing, and component suppliers can have a significant impact on a company’s success or failure in AI.
Nvidia was a big contributor to the success Micron Technology (NASDAQ: MU ). Unprecedented demand for Nvidia GPUs has created equally impressive demand for Micron’s high-bandwidth memory (HBM), DRAM, and NAND processors, as the company is a major chip supplier to Nvidia. However, the continued shortage of its data center memory chips — which play a critical role in AI processing — may work against Micron. For its flagship Vera Rubin chip, slated for release in the second half of 2026, Nvidia is reportedly using memory chips from Micron’s biggest rivals.
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This morning’s reports suggest so SK Hynix and Samsung Electronics (OTC: SSNLF) will be the only one 6th generation HBM4 suppliers for the Vera Rubin processor, according to an article first published in Korea Economic Daily. The publication cited sources suggesting that SK Hynix will provide more than half of Nvidia’s total HBM supply this year, while Samsung will be the leading supplier of HBM4 chips for Vera Rubin.
SK Hynix and Samsung Electronics are the largest HBM suppliers in the world, with 34% and 33% of the market, respectively, according to Counterpoint Research. Micron controls 26% of the market, coming in third.
This could have serious consequences for Micron’s future. Nvidia is the gold standard and market leader in data center GPUs, with an estimated 92% of the market, according to IoT Analytics. Furthermore, the biggest companies in technology — namely the alphabet, Microsoft, Amazonand Meta platforms — Announced plans to dedicate $700 billion in combined capital spending by 2026, with the bulk of that spending earmarked for AI-centric data centers and servers.
However, the news is not all bad. Citi analyst Atif Malik estimates that the cost of some memory chips will rise by 171% this year, fueled by continued data center demand and continued shortages. As a result, Micron likely won’t have trouble finding markets for its other memory chips, even those that Nvidia doesn’t integrate with the Vera Rubin chip. Additionally, Micron may be tapped later in the production cycle as Vera Rubin’s shipments increase, according to Radio Free Mobile independent analyst Richard Windsor.
