Micron Technology, a key supplier to NVIDIA, warned that the memory chip shortage has accelerated. The company now expects the shortage to last beyond 2026. An executive described the situation as "unprecedented."
The shortage is driven by a surge in demand for high-end semiconductors required for artificial intelligence infrastructure. High-bandwidth memory (HBM) needed for AI accelerators consumes a significant portion of the industry’s available capacity.
This intense HBM demand creates a domino effect. It is leading to a "tremendous shortage" of conventional memory chips used in PCs and smartphones.
The report highlights sustained demand for components central to NVIDIA’s business. It also flags a critical supply chain risk that could impact production capabilities and costs moving forward. No specific market reaction was detailed in initial reports.