Some Nvidia Corp (NASDAQ: NVDA) customers have reportedly been informed that prices for servers equipped with its AI chips could increase by more than 15%.
Nvidia AI Server Prices Could Rise 15% or More
This price increase is expected to apply to systems shipped in early 2027 and affect servers powered by Vera Rubin and Grace Blackwell platforms, among others, Bloomberg reported Sunday, citing people familiar with the process.
The hike will depend on Nvidia chip generation and memory configuration, the report said.
Server companies that build systems for major data center operators, including Microsoft Corp (NASDAQ: MSFT), Alphabet Inc.'s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Oracle Corp (NYSE: ORCL), have reportedly informed customers about the upcoming price hike.
Nvidia did not immediately respond to Benzinga's request for comment.
Soaring Memory Costs Drive AI Infrastructure Bills Higher
The reported price increases come as demand for memory chips continues to surge.
Memory makers like Samsung Electronics (OTC: SSNLF), SK Hynix Inc - ADR (NASDAQ: SKHY) and Micron Technology, Inc. (NASDAQ: MU) have gained greater pricing power as AI infrastructure spending strains supply.
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Tech giants like Apple Inc. (NASDAQ: AAPL) and Qualcomm Inc. (NASDAQ: QCOM) have also raised or announced plans to raise prices because of surging memory costs and supply chain constraints due to the ongoing chip shortage.
NVDA Earnings in Focus
The development comes as Nvidia prepares to report its second-quarter results on Aug. 26.
According to Benzinga data, analysts expect Nvidia's revenue to jump 96% to $92 billion. Meanwhile, third-quarter guidance is projected to reach $103 billion.
Price Action: Nvidia shares closed at $214.72 on Friday, down 0.98% for the day. The stock was trading at $214.68 in Monday's premarket session, down 0.02%. In the past 12 months, Nvidia shares are up by 19.41%, according to Benzinga Pro.
According to Benzinga Edge Rankings, Nvidia ranks in the 99th percentile for growth and has maintained positive price trend ratings across the short, medium and long term.