Nvidia (NVDA) Stock Slides as Customers Brace for 15% Server Price Hikes
TLDR
- Nvidia customers are facing server price hikes of more than 15% due to rising memory chip costs
- The increases will apply to systems shipped early next year, including Vera Rubin and Grace Blackwell chip systems
- Samsung, SK Hynix and Micron have gained leverage as demand for AI infrastructure surges
- Nvidia reports Q2 earnings this week, with revenue expected to hit $92 billion, up 96% year-over-year
- NVDA stock dropped from $227 to around $214.75 ahead of the earnings report
Nvidia customers are being told to expect server price hikes of more than 15%, driven by surging memory chip costs. The increases will hit systems shipped early next year.
The affected systems include those built around Nvidia’s Vera Rubin and Grace Blackwell chips. The size of each price increase will depend on the chip generation and memory configuration involved.
Contract server builders have already notified major data center operators of the coming increases. Those customers include Microsoft, Google and Oracle, according to Bloomberg.
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