top of page

AI Server Memory Prices Poised to Double Amid Nvidia Chip Shift

  • tech360.tv
  • Nov 20
  • 2 min read

Server-memory prices could double by late 2026 due to Nvidia’s decision to use smartphone-style memory chips in its artificial intelligence servers. This forecast comes from a report by Counterpoint Research, a technology-focused market research firm.


Credit: NVIDIA
Credit: NVIDIA

Nvidia recently opted to change its memory chip type to LPDDR, a low-power memory chip typically found in phones and tablets. This shift from DDR5 chips, standard in servers, aims to reduce AI server power costs.


The change is expected to create sudden demand that the industry cannot easily handle. This is because each AI server requires more memory chips than a single handset, according to Counterpoint Research.


Global electronics supply chains have already experienced a shortage of legacy memory chips. Manufacturers have been focusing production on high-end memory chips suited for AI applications, causing this scarcity.


Memory suppliers, including Samsung Electronics, SK Hynix, and Micron, face existing shortages of older dynamic random-access memory products. These organisations reduced production to prioritise high-bandwidth memory, essential for advanced accelerators powering the global AI boom.


Counterpoint warned that current tightness at the low end of the market risks spreading upward. Chipmakers are weighing whether to divert more factory capacity to LPDDR to meet Nvidia's substantial needs.


Futuristic NVIDIA building with geometric canopy against blue sky, lit paths below. Greenery and NVIDIA logo in foreground. Modern and sleek.
Credit: NVIDIA

The firm stated, “The bigger risk on the horizon is with advanced memory, as Nvidia’s recent pivot to LPDDR means they're a customer on the scale of a major smartphone maker - a seismic shift for the supply chain which can’t easily absorb this scale of demand.”


Counterpoint expects prices for server-memory chips to double by the end of 2026. It also forecasts overall memory chip prices are likely to rise 50% from current levels through the second quarter of 2026.


Higher server-memory prices would increase costs for cloud providers and AI developers. This could add pressure to data-centre budgets already stretched by record spending on graphics processing units and power upgrades.

  • Nvidia's shift to LPDDR memory for AI servers could double server-memory prices by late 2026.

  • The change from DDR5 chips to LPDDR, typically found in phones, will create sudden, high demand.

  • Memory suppliers like Samsung Electronics, SK Hynix, and Micron already face shortages of older memory due to focusing on high-bandwidth memory.


Source: REUTERS

 
 
 

Comments

As Asia becomes the fastest growing tech adoption region, biz360tv is committed to keeping readers up to date on the latest developments in business technology news in Asia and beyond.

While we use new technologies such as AI to improve our storytelling capabilities, our team carefully select the stories and topics to cover and goes through fact-checking, editing, and oversight before publication. Please contact us at editorial@tech360.tv if you notice any errors or inaccuracies. Your feedback will be vital in ensuring that our articles are accurate for all of our readers.

bottom of page