Nvidia's SK Hynix Deal Locks Up 85% of Global HBM Capacity
The global AI hardware market is facing a structural shift due to severe shortages in high-bandwidth memory (HBM) supply. This scarcity, driven by limited production capacity and rising demand, has split the market into two tiers: those with access to secure HBM supplies and those without.
Nvidia's recent partnership with SK Hynix, valued at over $500 billion, is a significant development in this landscape. While often misinterpreted as a purchase agreement, it grants Nvidia priority access to SK Hynix's HBM output.
Morgan Stanley estimates that Nvidia will corner 37% of HBM capacity in 2027, followed closely by Alphabet at 36%, and AMD at around 12%. Together, these three companies are projected to consume 85% of global HBM capacity next year.