Memory has grown to nearly two-thirds of AI chip component costs

HBM now represents 63% of AI chip component costs across Nvidia, AMD, Google, and Amazon designs, up from 52% in Q1 2024, per Epoch AI. Absolute HBM spend grew from $12B to $32B in 2025 while packaging and auxiliary costs shrank as shares. This signals continued supply chain concentration risk and cost pressure on AI hardware, with SK Hynix and Samsung holding outsized leverage.