Analysts warn the global smartphone market is on track for its sharpest decline on record in 2026, as AI-driven data center demand for HBM memory chips squeezes supply for consumer devices made by Samsung, Apple, and Google.

Google DeepMind CEO Demis Hassabis told CNBC that the global memory chip supply chain is severely constrained, limiting AI model deployment and research, even for Google despite its proprietary TPU infrastructure.

Intel CEO Lip-Bu Tan announced the company has hired a new chief architect to lead GPU development, positioning Intel to compete in the AI accelerator market dominated by Nvidia and AMD. Tan also warned that memory chip shortages will persist until 2028, creating challenges for AI infrastructure expansion.