Nvidia CEO Jensen Huang Dismisses 2029 Memory Oversupply Concerns

Nvidia CEO Addresses Memory Market Concerns

Nvidia CEO Jensen Huang told CNBC that he does not foresee a surplus in memory supply by 2029. This statement comes after a recent sell-off in memory stocks, which was triggered by concerns about potential oversupply and weakening demand in the coming years.

Continued Demand for Memory Technologies

Huang highlighted the ongoing need for memory, stating, "You can always use more of it." He specifically mentioned High Bandwidth Memory (HBM) as a type of RAM that will be utilized for years. Nvidia has also integrated LPDDR memory, typically found in cell phones, into data centers, achieving twice the energy efficiency of existing solutions.

Background of Memory Stock Sell-off

The recent decline in memory stocks followed an opinion column in a South Korean publication, which suggested a deceleration in the AI boom and a potential "flood of new supply" by 2029. This led to concerns that the memory market could enter a downturn. Elon Musk also commented on the article, predicting China would produce "a LOT of RAM in 2028."

Further contributing to investor concern was China's ChangXin Memory Technologies (CXMT) announcing a new design architecture, raising fears that CXMT could gain market share from established players like SK Hynix, Samsung, and Micron.

Nvidia's Stance on Chinese Partnerships

When asked about potential partnerships with CXMT, Huang stated Nvidia is "open-minded." He acknowledged that "just about the whole world works with Chinese companies in the supply chain somewhere" and recognized China's capabilities in fundamental infrastructure technology and manufacturing. Huang also attributed China's semiconductor advancements to mounting U.S. regulations, which have spurred the country's development speed.