Much is made of the AI processing industry’s insatiable appetite for memories, but we don’t always have metrics as illustrative as the most recent projections from financial analysis company KeyBanc. In a recent text about the segment, the company projects that NVIDIA will use almost 10% of the total memories that the entire cell phone industry would need by 2026.
The text was shared in full by @jukan05. The focus is on different earnings and growth forecasts in the memory market, but it is when talking about the supply of chips that the analysis draws the most attention:
“On the supply side, smartphone OEMs will have to compete with hyperscalers to obtain not only NAND, but also LPDDR5X”, says the text, in free translation.
“NVIDIA’s latest Vera CPU uses 1.5TB of memory – up from Grace’s 512GB – indicating that NVIDIA will need 20 billion Gigabits (Gb) this year. This consumption is equivalent to 100-150 million cell phones, or just under 10% of the total smartphone market.”
Industry prepares for consumption of ICMS technology
The projection comes from the same expectations already mentioned by Citi, which expects a gigantic consumption of NAND by NVIDIA to enable the introduction of its new ICMS (Interface Memory Context Storage) technology.
Basically it is dedicated NAND memory for the KV Cache of the new cards, which should have an exponential impact of chips in each company rack for AI.
KeyBanc adds that NVIDIA’s appetite will also reach LPDDR5X modules, mainly used in high-end cell phones.
Cell phone market expected to fall in 2026
Along with its projections of NVIDIA’s exacerbated memory consumption, KeyBanc expects price increases in smartphones and, consequently, a drop in demand.
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The company says that Apple and Samsung must guarantee sufficient supply for their models, however, since 20% of the total material value (BOM) of smartphones comes from memories, prices for the manufacturers’ cell phones could rise between US$100 and US$150.
The result is an estimate of smartphone shipments reducing by 3% to 5% throughout 2026, following other electronic products that also require memory chips.
Via: WCCFTech
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Source: https://www.adrenaline.com.br/nvidia/nvidia-vera-rubin-para-ia-pode-consumir-memoria-equivalente-a-ate-150-milhoes-de-celulares/
