Nvidia Hikes Prices Amid Soaring Memory Costs and Escalating Global Uncertainty
Nvidia is reportedly increasing prices by 15% for AI servers equipped with VR and GB series chips, starting next year. This move comes in response to soaring memory costs, which analysts believe will help maintain gross margins and boost average selling prices for contract manufacturers such as Hon Hai (2317.TW), Quanta Computer (2382.TW), and Wistron (3231.TW).
The price hike is set against the backdrop of Nvidia's earnings report this week, which will be a critical test of the AI investment cycle. The company's success has created extremely high market expectations, and its valuation appears to have fully priced in every optimistic narrative about AI expansion.
Meanwhile, US Federal Reserve Chair Kevin Warsh will deliver a speech at the Jackson Hole symposium, where his remarks on inflation and interest rate outlook could carry significant weight for US equities. The Middle East tensions are also escalating, with the US set to unveil its toughest-ever sanctions package against Iran this week.
The uncertainty surrounding these events is weighing on global equity markets, as reflected in the recent performance of the S&P 500, which posted its first weekly decline since late July. The Philadelphia Semiconductor Index dropped 5.5% for the week, while Bitcoin reclaimed the $70,000 level for the first time since late May.