Samsung and SK Hynix Gain Bargaining Power as Nvidia AI Server Costs Surge
· Business · Economic Times, Al Jazeera
Server manufacturers have notified major data center customers, including Microsoft, Google, and Oracle, that prices for Nvidia-based AI systems will rise by over 15% for shipments starting in early 2027. The price increases affect systems built on Nvidia's Vera Rubin and Grace Blackwell platforms. Rising memory costs emerged as the primary driver behind the surge, placing South Korean chipmakers Samsung Electronics and SK hynix in a stronger negotiating position. According to Counterpoint Research, SK hynix held 58% of global high-bandwidth memory revenue in the first quarter, while Samsung led the broader DRAM market with a 39% share in the second quarter.
Why it matters
The 15% price hike for Nvidia AI servers increases capital expenditure for major cloud providers while boosting revenue and pricing power for memory giants Samsung and SK hynix.
Read the original report — Economic Times
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