Key Points
Micron Technology, a key supplier to Nvidia, is facing competitive challenges as SK Hynix and Samsung Electronics are set to be the sole suppliers of sixth-generation HBM4 for Nvidia’s upcoming Vera Rubin chip, anticipated in the second half of 2026. Current estimates indicate that SK Hynix will supply over half of Nvidia’s total HBM supply this year.
As of now, SK Hynix and Samsung control 34% and 33% of the high-bandwidth memory (HBM) market respectively, while Micron holds 26%. Despite this competition, demand for Micron’s memory chips is expected to remain robust due to the overall growth in AI-centric infrastructure, backed by $700 billion in planned expenditures from major tech companies like Alphabet and Microsoft by 2026.
Moreover, Citi analyst Atif Malik forecasts a 171% rise in some memory chip costs this year due to persistent demand and shortages. While Micron’s stock has declined 13% from its peak, it is projected to grow revenue by 109% in 2023, making it a potential investment opportunity moving forward.
