Nvidia CEO Jensen Huang said Thursday that memory supply is unlikely to exceed demand by 2029, despite the past week's decline in memory stocks. Huang spoke during an interview at Nvidia's GTC Berlin conference. Huang argued that users can always benefit from additional memory. Huang said HBM, a type of random access memory, will remain in use for years.
Huang claimed Nvidia was the first company to introduce LPDDR memory, which is used in mobile phones, into data centers worldwide. Huang said that deployment enabled Nvidia to deliver performance with twice the energy efficiency of anything else currently available worldwide. Huang said Nvidia will continue using large quantities of LPDDR memory.
Memory stocks fell over the past week amid concerns about oversupply and weaker demand in coming years. An opinion column published October 15 in a prominent South Korean publication urged the country's government to prepare for slower growth in the AI boom. The column cited two experts who expect a large increase in supply and intense competition in the memory market in 2029. The experts warned that the supercycle could end and the industry could enter a downturn by 2029. Memory is an essential component of Nvidia's chips. Excess supply could lower prices and reduce profit margins at memory manufacturers such as SK Hynix, Samsung and Micron. SpaceX and Tesla CEO Elon Musk responded to the column by predicting that China will produce large quantities of RAM in 2028.
ChangXin Memory Technologies (CXMT), a company in China, also contributed to the memory stock sell-off by announcing a new design architecture that could improve efficiency. The announcement increased investor concerns that CXMT could gain market share from SK Hynix, Samsung and Micron. Huang said Nvidia was open-minded when asked Thursday about a possible partnership with CXMT and the use of CXMT's memory products. Huang said Nvidia works with companies in China and that almost the entire world uses such companies somewhere in supply chains. Huang praised China's capabilities in fundamental infrastructure technology and said no country collectively surpasses China in manufacturing. Huang said those capabilities must be taken seriously.
Huang also argued that increasing US restrictions accelerated China's development of chip technology and manufacturing. The United States restricts exports of the country's most advanced semiconductors to China, including Nvidia's highest-end chips. However, some companies in China use a loophole to access the chips' computing power through data centers in Southeast Asia. Experts say this access has been important in improving the capabilities of AI models from China. Huang said US regulations accelerated China's semiconductor initiatives, efforts to nationalize semiconductor manufacturing capabilities and industrial support for the sector. Huang described US technology companies as powerful and ready to compete with any rival.
Nvidia CEO Says No Memory Glut Expected by 2029, Hails China's Tech Capabilities
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Nvidia CEO Jensen Huang said during GTC Berlin that no memory glut is expected by 2029, despite recent AI + crypto news. He noted that demand for HBM and LPDDR remains strong in data centers. Huang also praised China’s tech infrastructure, saying export restrictions have boosted local semiconductor progress. Inflation data remains a key factor for investors tracking global tech trends.
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