Samsung has generated significant profit selling DRAM, high-bandwidth memory (HBM), and NAND flash chips to top AI firms like AMD, Nvidia, and Grok. However, Elon Musk recently hinted that the tech giant might be overcharging for its memory components.
Responding to a JPMorgan note regarding memory and storage chips, Musk stated that Micron has kept its future memory prices reasonable. In contrast, he described competitors as extortionate. Micron's two primary rivals in this market are Samsung Electronics and SK Hynix.
Elon Musk hints at Samsung being extortionate with memory chip prices
In a post on X, Musk wrote, “Micron has been reasonable regarding future memory prices, while others have been extortionate, which is something today’s customers won’t forget.” He added that Micron is making the smart move for long-term customer loyalty.
The JPMorgan note, posted by institutional TMT research analyst Nicholas Mugalli, highlighted that Micron has secured 26 long-term deals. These agreements will account for about 35% of Micron's revenue through 2030. JPMorgan expects Korean memory chipmakers to announce similar agreements soon.
As the leader of companies like Tesla and SpaceX, Musk purchases massive quantities of memory chips for vehicles and Grok AI servers. His companies rely heavily on supplies from all three major memory brands: Micron, Samsung, and SK Hynix.
Demand for HBM has skyrocketed because it is a crucial component of the AI servers used by companies like Amazon, Apple, Google, Meta, and Microsoft. To meet this demand, memory chip brands have shifted most of their production capacity toward HBM.
This shift has reduced the production of conventional DRAM and NAND chips, driving their prices up by 80 to 90 percent this year compared to 2025. As a result, consumers are seeing higher prices for electronics like phones, laptops, and gaming consoles.
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