Nvidia Commits $279 Billion to Memory Chip Supply Chain
During its second-quarter earnings call, Nvidia revealed a massive supply commitment of $279 billion over the next few years for memory chips. This represents more than double the amount from just three months prior and is primarily driven by demand for high bandwidth memory (HBM) to support AI infrastructure expansion. The company plans to spend approximately $92 billion in fiscal 2027, followed by around $87 billion each year through 2029. This commitment reflects a strategic move to secure the tight HBM market and ensure supply for its Blackwell systems and Vera CPUs as it scales AI production. Nvidia's data center segment saw revenue of $89 billion in Q2 FY2027, up from $41 billion year-over-year. The company expects 70% total revenue growth in fiscal 2028 driven by Blackwell shipments and Vera Rubin scaling.
Tickers: $NVDA
Topics: AI supply chain data center expansion HBM (High Bandwidth Memory) Nvidia