Nvidia CEO Jensen Huang told CNBC he does not expect a memory glut by 2029 as his base case. His view comes as memory stocks sell off on competition worries and doubts about how long demand will last.
Jensen Huang does not foresee a memory glut by 2029 as his base case, the Nvidia CEO told CNBC on Oct. 22. That horizon runs longer than most analysts have speculated on so far.
Memory stocks rally, then slide
Memory-chip makers have posted large gains this year on demand from AI data centers. Micron is up roughly 172%, Samsung is up 66%, and SK Hynix has risen roughly 81%.
Recent news put that thesis to the test, however. Chinese memory maker ChangXin Memory Technologies (CXMT) announced it would roll out a new memory architecture by year-end that could pack more memory cells into the same space. CNBC also reported on a South Korean article that expects a flood of new supply, and the news led to a big sell-off in the memory space.
Memory is a commodity business in which supply and demand are hard to balance. Chipmakers have historically overbuilt capacity after demand surges, and the resulting gluts slumped prices.
Huang sees demand holding
Huang told CNBC at a conference in Berlin that you can always use more of it, referring to memory. He also said Nvidia is open to working with a company like CXMT.
Motley Fool analyst Bram Berkowitz writes that, apart from the ChangXin news and the South Korean article, there is no evidence demand is slowing. Micron and SK Hynix have signed numerous three- to five-year deals with some of their largest customers that lock in price ranges and sales volumes. SK Hynix plans to triple its wafer capacity by 2034.
Forecasts still show a price decline
Counterpoint Research forecasts that DRAM prices will fall by 23% in 2028 compared to 2027. Even after that decline, they would still be 230% higher than levels seen in 2025.
Berkowitz still advises investors not to go too heavy on the group, because he expects the sector to stay volatile.
Source: Motley Fool
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