NVIDIA Shares Plummet on Reports of AI Chip Price Hikes

NVIDIA's (NVDA.US) stock price took a hit on Monday, opening lower and continuing to decline throughout the day. As of press time, shares were down approximately 2.3% with a market capitalization of $5.08 trillion.

The price drop was largely attributed to reports that some of NVIDIA's largest customers have been informed of upcoming price hikes for servers equipped with NVIDIA's AI chips. According to sources, the prices will rise by more than 15% in most cases due to soaring memory chip costs.

The price hike is set to take effect starting with systems scheduled for shipment early next year, affecting models powered by the flagship Vera Rubin and Grace Blackwell chips. Major clients such as Amazon, Microsoft, Google, and Meta will be crucial in determining how they react to these price increases.