Memory has grown to nearly two-thirds of AI chip component costs
Key takeaways
- HBM will likely account for an even larger share in 2026 as memory supply remains tight and prices rise.
- Epoch's work is free to use, distribute, and reproduce provided the source and authors are credited under the Creative Commons BY license.
- For each AI chip designed by Nvidia, AMD, Google, and Amazon, we estimate the per-chip cost of four component categories: memory (HBM), logic dies, advanced packaging (CoWoS), and auxiliary components.
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HBM will likely account for an even larger share in 2026 as memory supply remains tight and prices rise. Hyperscalers are already anticipating this in capex guidance: Microsoft’s $190 billion FY2026 capex outlook includes about $25 billion from higher component prices, while Meta raised its 2026 capex range by $10 billion, citing higher component prices.
Epoch's work is free to use, distribute, and reproduce provided the source and authors are credited under the Creative Commons BY license.