Nvidia’s Memory Shift May Double Server Prices by 2026

San Francisco, CA — Nvidia Corp’s recent decision to switch to smartphone-style memory chips in its artificial intelligence (AI) servers could potentially double server memory prices by the end of 2026, according to a report from Counterpoint Research published on Wednesday.

The technology firm noted that Nvidia plans to replace traditional DDR5 memory chips, used in most servers, with LPDDR chips, which are typically found in smartphones and tablets. This shift is expected to create significant demand that the current supply chain may struggle to meet.

Counterpoint’s Research Director MS Hwang commented, saying, “Nvidia’s recent pivot to LPDDR means they’re a customer on the scale of a major smartphone maker — a seismic shift for the supply chain that can’t easily absorb this scale of demand.”

Memory suppliers such as Samsung Electronics, SK Hynix, and Micron have already been affected by a global shortage of legacy memory chips as manufacturers focus on high-bandwidth memory suited for AI applications. As a result, the supply chain is at risk of further strain due to increased demand for LPDDR chips.

The research predicts that server memory prices could double, with overall memory chip prices expected to rise by 50% through the second quarter of 2026, adding financial pressure to cloud providers and AI developers as they face record spending on graphics processing units and power upgrades.

Nvidia is anticipated to announce its earnings report later today, amid shifting market sentiments. Investors have reacted with rising stock prices, signaling expectations for a strong performance. The company also recently partnered with Dell to enhance AI capabilities in enterprise systems.

With the AI market heating up, Nvidia’s strategic moves could shape the tech industry’s future as it navigates supply challenges and evolving demand.