Supply Chain Insight: Long-Term Data Center Memory Agreements Become the Norm
BenBajarin · x · 2026-08-10
Tech analyst Ben Bajarin points out a significant shift in the AI compute supply chain: major customers are increasingly signing Long-Term Agreements (LTAs) for data center memory (such as HBM) with suppliers.
While mid-length LTAs were rare in the past during tight memory markets, all major vendors with scale are now agreeing to these deals. This indicates that supply chain executives are highly confident that the demand driven by LLM size, context length, Tokens Per Second (TPS), and long-horizon agentic tasks will not ease anytime soon.
Even as memory makers signal that gross margins won't go much higher, the massive unmet demand implies that Average Selling Prices (ASPs) and margins are unlikely to fall sharply in the near future.
Related event: Surging AI Demand Triggers HBM Shortage and Supply Chain Shifts(4 posts)→
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