Nvidia Price Hikes Fuel Memory Suppliers' Gains

Samsung Electronics and SK hynix are gaining pricing power in the AI supply chain as rising memory costs feed into prices for Nvidia-based server systems. Server manufacturers have notified major data center customers, including Microsoft, Google, and Oracle, that prices for Nvidia-based AI systems will rise by more than 15 percent in many cases starting in early 2027.

The increases will affect systems built on Nvidia's next-generation Vera Rubin and current Grace Blackwell platforms. The size of the increase varies by chip generation and memory configuration, with memory being a key source of cost pressure.

Nvidia's AI accelerators depend on high-bandwidth memory, while AI data centers consume large amounts of conventional server DRAM. Supply has remained tight as cloud companies expand computing capacity and secure memory through longer-term contracts.

Samsung and SK hynix occupy a strong position in the market, with Samsung leading the broader DRAM market in the second quarter with a 39 percent share and SK hynix holding a 58 percent share of global HBM revenue in the first quarter. The two Korean companies together account for 65 percent of global revenue.

Counterpoint Research expects server DRAM contract prices to rise another 13 to 18 percent in the third quarter, as AI-related demand continues to absorb available capacity. Hana Securities also sees Samsung and SK hynix benefiting from the trend, with demand for higher-value memory expected to remain strong through 2027.