Nvidia CEO Jensen Huang told CNBC in October 2026 that he does not expect an oversupply of memory by 2029, directly countering recent concerns that triggered a selloff in memory stocks [1]. The memory sector experienced significant declines following an opinion column published in a South Korean publication on October 15 that warned of a potential "flood of new supply" turning the memory market into a "red ocean" by 2029, with experts suggesting the AI supercycle could end and the industry could enter a downturn [1]. Huang's optimistic outlook centers on the premise that memory demand is essentially unlimited, stating "you can always use more of it" and emphasizing that high-bandwidth memory (HBM) will be utilized for years to come [1]. He highlighted Nvidia's innovation in deploying LPDDR memory—traditionally used in cell phones—into data centers, achieving twice the energy efficiency of competing solutions and enabling continued abundant use of memory products [1].
The memory stock selloff was further exacerbated by China's ChangXin Memory Technologies (CXMT) announcement of new design architecture promising greater efficiencies, raising investor concerns about potential market share losses for established competitors SK Hynix, Samsung, and Micron [1]. When questioned about potential partnerships with CXMT, Huang adopted a measured stance, stating Nvidia is "open-minded" and noting that the company works with Chinese firms throughout its supply chain [1]. He acknowledged China's capabilities in fundamental infrastructure technology and manufacturing, stating "no country collectively is better at manufacturing than China, and so we have to take their capabilities very seriously" [1]. This balanced perspective suggests Nvidia's confidence in sustained demand despite competitive pressures and technological advances from Chinese manufacturers.
CONCLUSION
Huang's dismissal of 2029 memory oversupply concerns provides a counterweight to recent bearish sentiment, though the acknowledgment of China's manufacturing capabilities and CXMT's technological advances indicates competitive headwinds ahead. The market's medium impact reflects conflicting signals: optimistic demand fundamentals from Nvidia's leadership versus legitimate concerns about supply expansion and Chinese competition that triggered the recent memory stock selloff.