NVIDIA CEO Jensen Huang sent a strong signal to global memory chip manufacturers: Despite expanding production, NVIDIA will take it all.
On Monday, Huang stated at the Morgan Stanley Technology Conference that the chip supply shortage is &#34;great news&#34; for NVIDIA, as limited resources will encourage customers to prefer the strongest solutions directly. He directly addressed DRAM manufacturers: &#34;Whatever capacity you expand, we (NVIDIA) will use it all.&#34;
This statement is seen by the industry as a strong endorsement of the DRAM industry's prosperity and indicates that the demand for storage resources in the AI computing arms race will continue to rise.
The industry believes that behind Huang's statement is the enormous demand for storage resources from NVIDIA's upcoming next-generation Vera Rubin platform. As NVIDIA races towards the new platform, the order prospects for its foundry partners such as Foxconn, Quanta, and Wistron are also looking optimistic.
<h2>Limited Supply Becomes an Advantage, NVIDIA Goes on a Buying Spree</h2>
Huang elaborated on his unique logic regarding resource shortages at the conference: In an environment where various resources such as land, electricity, and construction are limited in data centers, customers will be more cautious in their purchasing decisions and more inclined to choose the strongest solution all at once. This trend is particularly evident for memory.
His statement implies that even if DRAM prices continue to rise due to tight supply, NVIDIA will maintain strong purchasing power and will not reduce inventory due to cost pressures. This provides clear demand visibility for the three major global DRAM manufacturers: Samsung, SK Hynix, and Micron.
NVIDIA's thirst for storage resources is closely related to the technical roadmap of its next-generation AI platform. For example, the existing GB300 supports high-bandwidth memory (HBM) capacity of up to 288GB, a significant increase from the 192GB of GB200.
Entering the Vera Rubin generation, while the HBM capacity remains at 288GB, the specification will upgrade from HBM3E to HBM4. HBM4 adopts a 16-layer stacking design, which is more complex than the 12-layer stacking of HBM3E, leading to a higher natural yield loss rate. The storage resources consumed per unit output will be even larger, which is expected to further exacerbate the DRAM supply shortage.
<h2>Three Major DRAM Manufacturers Expand Production, Consumer Shortage Difficult to Resolve in the Short Term</h2>
Although Samsung, SK Hynix, and Micron have all initiated expansion plans, the industry points out that the current capacity expansion of the three major manufacturers is mainly focused on HBM and enterprise-level DRAM, and the supply shortage of consumer DRAM is unlikely to ease for at least the next year.
Meanwhile, prices for HBM and data center-use LPDDR4, LPDDR5, and the new generation DDR6 are expected to continue rising. The ongoing tight supply-demand structure supports the profit outlook for memory chip manufacturers.
Institutions are optimistic that NVIDIA's continued expansion of storage inventory and pursuit of new generation AI platform opportunities will drive the order momentum of its supply chain partners. Major foundries such as Foxconn, Quanta, and Wistron, as core assembly partners for NVIDIA's AI servers, are expected to benefit simultaneously from this round of demand expansion

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Jensen Huang stated at the Morgan Stanley Technology Conference: Whatever capacity the DRAM manufacturers expand, NVIDIA will use it all. With NVIDIA's new generation Vera Rubin platform adopting the more complex HBM4 specifications, the consumption of storage resources has doubled, and the three major DRAM manufacturers' capacity expansions still cannot fill the gap

- Nvidia's CEO Jensen Huang signaled strong demand for DRAM, stating that Nvidia will utilize whatever capacity is produced by manufacturers.  
- He emphasized that the chip supply shortage is advantageous for Nvidia, as it leads customers to prefer high-performance solutions, resulting in persistent demand for storage resources amid the AI arms race.  
- Even with rising DRAM prices, Nvidia's commitment to purchasing will provide clarity on demand for major manufacturers like Samsung and SK Hynix, while expansion plans by these firms may not alleviate consumption shortages in the short term.

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Jensen Huang calls on DRAM manufacturers to expand production: buy as much as you can