NVIDIA Slams Brakes on AI Server Sales Amid Storage Chip Cost Surge
NVIDIA has announced a significant price increase for its AI chip-equipped servers due to soaring storage chip costs. The price hike will be over 15% and will affect deliveries scheduled for early next year, particularly those featuring NVIDIA's flagship Vera Rubin and Grace Blackwell chips.
The rising cost of storage chips is putting pressure on companies like NVIDIA, which relies heavily on them for its AI servers. Major clients such as Microsoft, Alphabet, and Oracle have been informed of the price hikes, highlighting the strong bargaining power of storage chip manufacturers like Samsung Electronics, SK Hynix, and Micron.
NVIDIA's GF Value™ is calculated at $386.13, indicating that the stock is currently undervalued by 44.4% at its current price of $214.72. This suggests that investors may find an attractive entry point, provided they are willing to navigate market volatility and potential price adjustments.