Structural HBM Shortage Risks Nvidia GPU Output as Micron Sales Hit $37B
An acute shortage of high-bandwidth memory and DDR5 chips due to surging AI hardware demand threatens Nvidia’s GPU production by creating HBM bottlenecks and driving component costs higher. Micron posted record FY25 sales of $37.38 billion with earnings near $8.29 per share and forecasts a 300% EPS jump in FY26.
1. Memory Chip Demand Surge
The global AI hardware boom has triggered a structural shortage of high-bandwidth memory (HBM) and DDR5 chips, with data centers, GPUs and accelerators consuming most of the available supply and bandwidth.
2. Potential GPU Supply Constraints for Nvidia
Nvidia’s GPUs rely heavily on HBM modules, and with HBM now the world’s most supply-constrained memory type, Nvidia could face production bottlenecks and elevated component costs that may pressure delivery schedules and margins.
3. Micron’s Record Sales and EPS Outlook
Micron posted FY25 revenue of $37.38 billion and $8.29 per share in earnings, and is projected to deliver a 300% EPS jump to $33.22 in FY26, underscoring upward price pressures but signaling tighter memory availability for Nvidia.