With the ongoing memory shortage continuing to create questions regarding the scale of the AI infrastructure buildout, NVIDIA might have signed new agreements with SK hynix and Micron to procure the memory chips for its products. This report comes courtesy of Edgewater Research, with the firm adding that the agreements come after NVIDIA had trimmed its DRAM memory forecast earlier to indicate that the Rubin AI chips might use less memory than initially expected.

Not only have the ongoing memory shortages significantly affected product prices, but they are also expected to last for several years due to the capital-intensive nature of the sector. Setting up new semiconductor manufacturing plants is a tediously long process that takes several years.

The extended timeline and the high costs have also led the semiconductor industry to be well known for its cyclicality, where manufacturers are hesitant to invest due to worries that the demand might have abated by the time their facilities come online.

Computer manufacturer MSI's chairman warned earlier this year that the memory shortage could last throughout 2026 and had already disrupted the consumer end of the market. His remarks came after chip designer AMD warned that memory prices would not stabilize until 2028 .

Now, a research report from Edgewater Research suggests that NVIDIA might have signed multi-year agreements with SK hynix and Micron for HBM and DRAM memory products. These agreements are now becoming common in the industry and are part of the wider debate about the sector's trends and whether they are still cyclical or are becoming secular. The long-term agreements also provide chip manufacturers with some certainty regarding demand to make them more willing to invest in capacity expansion.

Edgewater also quotes its previous research reports to outline that memory prices for the calendar year 2027 are unlikely to be finalized until the end of 2026. This indicates that more agreements might be in store in the industry as they will determine the prices for next year.

The trend towards the LTAs has even generated reports that Samsung and SK hynix have stopped signing one-year short-term agreements . Instead, the firms prefer to sign agreements that target three to five years instead.

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