NVIDIA could take 37.3% of 2027 HBM supply

NVIDIA’s supply commitments increased in the quarter ended July 26, with the company attributing the rise primarily to memory procurement. Morgan Stanley estimates NVIDIA has claimed about 37.3% of global high-bandwidth memory supply for 2027, ahead of Alphabet at 36% and AMD at 12.1%.

Together, those three companies account for roughly 85% of estimated 2027 HBM capacity, leaving a much smaller pool for other buyers. The estimates, reported by The Inference, point to intensifying competition for the memory needed to support high-end AI chips.

Memory pricing is also pressuring NVIDIA’s profitability. Gross margin was 75% and is guided to 74% this quarter, with a trough of 71% to 72% expected in the January quarter. CFO Colette Kress linked the margin pressure to memory costs, while Jensen Huang said on September 17 that he expects NVIDIA to sell twice as many chips next year. The company’s formal guidance calls for about 70% revenue growth.