Nvidia(US:NVDA) Hua Er Jie Jian Wen·2025-11-19 09:45Core Insights - Nvidia's decision to switch from traditional DDR5 memory chips to low-power LPDDR chips for AI servers may lead to a doubling of server memory prices by the end of 2026, exacerbating the global memory shortage in the electronics supply chain [1][4]. Group 1: Impact on Supply Chain - Nvidia's shift to LPDDR memory chips is expected to create a sudden surge in demand, comparable to that of major smartphone manufacturers, which the current supply chain is unprepared to handle [2][3]. - The transition to LPDDR chips is driven by the need to reduce power costs for AI servers, but the increased memory requirements for servers compared to mobile devices will strain supply [2][3]. Group 2: Market Dynamics - Major memory suppliers like Samsung, SK Hynix, and Micron are already facing supply shortages due to a shift in production focus towards high-bandwidth memory for AI applications, leading to reduced output of older DRAM products [3]. - The tight supply in the low-end memory market poses a risk of upward pressure on prices across other memory products as manufacturers consider reallocating production capacity to meet Nvidia's demand [3]. Group 3: Financial Implications - The anticipated doubling of server memory prices will increase operational costs for cloud service providers and AI developers, adding further strain to already tight budgets [4][5]. - Data center operators are currently experiencing record spending levels due to GPU and power infrastructure upgrades, and rising memory costs could further squeeze profit margins [4][5].