High Bandwidth Memory Dominates AI Market
According to Morgan Stanley, Nvidia, Alphabet, and Advanced Micro Devices (AMD) have secured 85% of next year’s production of high bandwidth memory (HBM), which is crucial for AI infrastructure. Nvidia holds the largest share at 37%, while Alphabet and AMD possess 36% and 12%, respectively. These companies have locked in these supplies as demand for HBM continues to rise, driven by a shift in AI workloads towards inference tasks.
Production of HBM is constrained due to the limited availability of extreme ultraviolet (EUV) lithography machines, necessary for manufacturing. As demand increases, the ability to access HBM resources is becoming more critical than the performance of AI accelerators themselves. Nvidia, Alphabet, and AMD’s strategic partnerships and supply chain innovations position them strongly in the competitive landscape, emphasizing the importance of securing essential components in tech markets.
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