Nvidia's Eroding Gross Margin Points to a Bright Future for Micron

Nvidia's second-quarter earnings report was impressive, with data center sales growing 117% year over year and total revenue reaching $96.2 billion, more than double the $46.7 billion posted a year ago.

The company's data center segment generated $89 billion alone, producing more sales than Nvidia's entire company did one year ago.

Nvidia Chief Financial Officer Colette Kress attributed the erosion of gross margin to rising memory prices, specifically high-bandwidth memory (HBM).

Kress stated that Nvidia's commitments for critical components increased from $119 billion last quarter to $279 billion, with 'primarily related to the procurement of memory.'