Investing.com reports, citing a DigiTimes source, that high‑bandwidth memory (HBM) pricing is on track to more than double by 2027 as artificial‑intelligence demand surges and capacity constraints tighten. The next‑generation HBM4 is expected to command $4‑$5 per gigabit or higher, compared with roughly $2 per gigabit in the second half of 2026. Production of HBM4 is complex, requiring a four‑to‑six‑month cycle and delivering significantly lower initial yields; each gigabit consumes about three times the wafer capacity of standard DDR5 DRAM, sharply limiting the volume that existing fabs can produce.
Industry heavyweights Samsung Electronics Co Ltd (KS:005930), SK Hynix Inc (KS:000660) and Micron Technology Inc (NASDAQ:MU) are securing global supply through three‑ to five‑year long‑term agreements with tier‑one AI customers. DigiTimes estimates that these dedicated contracts, combined with rising HBM allocation, will leave roughly 50 % of the world’s total DRAM capacity unavailable to smaller buyers by 2027.
Nvidia’s upcoming Rubin architecture is set to accelerate the HBM4 pipeline, while booming DDR5 profit margins—exceeding 80 % for some suppliers this year—are forcing chipmakers to demand premium HBM pricing simply to justify shifting production away from conventional DRAM.
On the capital‑markets front, SK Hynix made a historic U.S. trading debut today via an American Depositary Receipt on the Nasdaq, raising $26.5 billion in a record‑breaking offering that trades at a premium to its Seoul‑listed shares. The debut highlights the continuation of the AI‑memory mega‑trade that has already propelled Micron’s share price over 700 % higher, SanDisk over 3,800 %, SK Hynix itself over 630 % and Samsung over 360 %.
Despite broader market jitters about potential cuts in tech‑infrastructure spending, DigiTimes’ supply‑chain sources indicate that AI hardware remains fundamentally undersupplied through 2027. Consequently, memory suppliers are expected to retain absolute pricing leverage in contract negotiations slated for late 2026, leaving uncontracted consumer‑electronics manufacturers exposed to severe supply shortfalls.