The decision by Nvidia Corp (NASDAQ:NVDA) to integrate smartphone-style memory chips into its AI servers could potentially double the prices of server memory by the end of 2026, according to a report.

Demand Spike Pressures Market

The move by Nvidia to use Low-Power Double Data Rate (LPDDR) memory chips, commonly found in smartphones and tablets, instead of the traditional DDR5 chips used in servers, is expected to cause a surge in demand that the industry may not be equipped to handle, according to a Counterpoint Research report on Wednesday.

“..a seismic shift for the supply chain which can't easily absorb this scale of demand," wrote Research Director MS Hwang.

This shift comes amid a global shortage of legacy memory chips, with manufacturers prioritizing advanced AI-ready components. Nvidia's sudden surge in demand for LPDDR chips could strain the already tight supply chain even further.

Counterpoint Research cautioned that the low-end shortage could ...