NVIDIA has addressed the ongoing memory shortages and explained how the company has positioned itself to ensure it doesn't compromise its supply chain operations.
NVIDIA Is In a "Strong" Position to Deal With Memory Shortages, But Gamers May Feel the Pinch
Memory shortages have been a highlight of 2025, and supply constraints are entering the new year with greater intensity. DRAM demand has been at an all-time high from the AI sector, and with NVIDIA leading the charge, a question arises about how the company is being affected by the situation. At the CES Financial Analyst Q&A session (transcript via Jukan), joined by NVIDIA's CEO Jensen Huang and CFO Kolette Cress, an analyst questioned about how the company is affected by the DRAM supercycle, and the available inventory on hand, to which NVIDIA had to say this:
Question: Wells Fargo: Supply chain variables seem numerous—1) DRAM pricing, 2) available supply volumes, etc. Please explain.
The reason we are advantaged is that we were already at massive scale and growing very rapidly from that large base, so we prepared for this kind of major ramp-up with partners well in advance. We invested heavily in partners, much of it in the form of prepayments, enabling them to expand capacity. Thanks to long-standing relationships, we believe we are in a strong position.
We are essentially the only semiconductor company in the world that directly purchases DRAM at global scale. People ask, "Why buy DRAM?" The reason is simple: transforming that DRAM into CoWoS supercomputers is extraordinarily difficult. Properly connecting that supply chain like "plumbing" is a major advantage for us. In tight situations like now, having this capability is also fortunate.
NVIDIA has been under direct contact with DRAM suppliers, not just recently, but ever since the firm evolved into a major player in the AI race. A prime example of this is how Jensen Huang recently visited South Korea, where he met with Samsung's executives to discuss not only HBM supply but also DRAM matters. Of course, for NVIDIA, it is vital to enter into LTAs with memory manufacturers, since the company cannot afford delays when it comes to product ramp-up, which is one of the reasons why Team Green says that they are in a strong position to combat the DRAM shortages.
It would not be incorrect to say that NVIDIA's AI pursuit is one of the primary reasons for the memory shortages in the first place, given that the company has acquired general-purpose DRAM (LPDDR, SO-DIMM, GDDR), along with HBM supply, to fuel the race for AI infrastructure. Interestingly, Jensen also showcased a new memory platform, called "Inference Context Memory Storage Platform", which is a new class of AI-focused storage that will also likely take up DRAM wafers.
While at the AI front, NVIDIA appears to be unaffected by the shortages, but when you look at their consumer business, the company is already facing troubles. Reports suggest that the RTX 50 SUPER launch was delayed by several months due to DRAM shortages, and that the company plans to reintroduce the GeForce RTX 3060 to the market as a response to the shortage. This division clearly indicates that NVIDIA has evolved beyond being a gaming company, which is why consumers will be affected by memory shortages.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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