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Nvidia Customers Face 15% Server Price Hikes Due to Soaring Memory Costs
Nvidia customers are bracing for server price hikes of over 15% due to soaring memory chip costs, according to Bloomberg News. The higher prices will apply to systems shipped early next year, including those equipped with Nvidia's flagship AI chips like Vera Rubin and Grace Blackwell.
The size of the increase will vary depending on the Nvidia chip generation and memory configuration. Major technology companies have recently raised prices due to chip shortages, and Nvidia has also increased prices for its gaming-oriented PC graphics cards.
Nvidia can charge tens of thousands of dollars per chip because supply from contract manufacturer Taiwan Semiconductor Manufacturing Co still cannot meet runaway demand, despite having a 75% gross margin.