Nvidia has locked in $279 billion in multi-year memory purchase commitments, primarily for high-bandwidth memory, as the company accelerates its supply chain strategy to secure critical components. The agreements, representing a 135% quarter-over-quarter surge in such commitments, reflect Nvidia’s aggressive push to lock down HBM supply amid soaring demand for AI accelerators.
The commitments come as Nvidia reported FY2027 second-quarter earnings, with gross margins guided to 71–72% for the quarter, down from higher memory costs. The company expects margins to recover to 72–73% in FY2028 as elevated memory prices stabilize. Analysts note that Nvidia’s scale and long-term contracts are reshaping the semiconductor competitive landscape, forcing rivals to adapt to a supply-constrained environment.
Stocks of major memory suppliers reacted unevenly to the news. SK Hynix rose 2.49% in Seoul trading, while Samsung Electronics gained 2.49%. Micron Technology fell 2.78% to $912.34, despite a 674% year-over-year gain, as investors priced in a potential pullback following the surge. AMD declined 1.87% to $471.95, reflecting broader sector volatility tied to Nvidia’s strategic moves.
Nvidia is also evaluating architectural adjustments to its upcoming Rubin Ultra platform, considering downgrades from 12-Hi to 8-Hi HBM4 stacks to optimize die utilization amid a constrained supply pool. The company is aiming to maximize accelerator shipments while navigating a shifting industry dynamic from demand constraints to supply constraints.
ARK Investment Management adjusted its semiconductor portfolio on August 26, selling 37,977 shares of AMD while purchasing positions in Broadcom and Cerebras. The moves followed Nvidia’s earnings report and underscored the broader market’s sensitivity to supply chain dynamics and competitive shifts in the chip sector.
