Rumor
Nvidia H200 orders projected to add $3 billion to memory market TAM
Sunday, December 7, 2025 at 09:55 PM
Morgan Stanley reports that urgent demand for Nvidia H200 chips is projected to generate an additional $3 billion in total addressable market for memory manufacturers.
Context
NVIDIA is aggressively scaling production of its H200 AI GPU, with targets reportedly reaching 2 million units. As each H200 requires six memory stacks, this ramp-up will consume roughly 12 million HBM3E cubes. This volume reinforces Micron's role as a primary supplier, following the Q2 2024 launch of its high-efficiency 24GB 8-high HBM3E modules.
The manufacturing shift is significant because HBM3E requires roughly three times the wafer supply of standard DDR5. Projections indicate that NVIDIA's demand will absorb nearly 10% of Micron’s total DRAM capacity, leading the company to announce that its HBM supply is fully sold out for 2024 and mostly allocated for 2025.
This imbalance highlights a capacity-constrained environment where Micron is a key beneficiary of the AI boom. While high resource intensity may tighten the broader memory market, it is driving record data center growth and high-margin revenue through 2025.
Sources (2)
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