Nvidia Reportedly Secures DRAM and HBM Memory Supply From SK Hynix and Micron Until 2028

Nvidia plans to raise prices for AI chip servers by over 15% due to rising memory costs, according to Bloomberg. The company is also investing $6 billion to license AI technology from startup Poolside, competing with firms like OpenAI and Anthropic. Anthropic faces pressure as customers opt for cheaper AI models ahead of its potential IPO.

NVIDIA is investing $7 billion in AI startup Poolside, including $6 billion for licensing and hiring engineers, and $1 billion at a $12 billion valuation. The deal aims to bolster NVIDIA's open-weight AI models and hedge against potential GPU demand declines. NVIDIA also plans to raise prices for its Grace Blackwell GPUs and Vera Rubin systems by 15-17 percent next year, increasing data center costs. According to Edgewater, NVIDIA has likely signed long-term agreements with Micron and SK hynix,

SK Hynix (SKHY) plans to buy back and cancel 3.3% of its shares, worth 40 trillion won ($29 billion), over three months. The company believes its stock is undervalued. Shares rose 12% in Seoul and 4% on Nasdaq. SK Hynix also announced a new shareholder return framework, aiming to return over 50% of cumulative free cash flow from 2025-2027. The company reported record revenue of 79.3 trillion won in Q2, with a 76% operating margin.

Micron (MU) CEO Sanjay Mehrotra sold $37 million in shares in July, before announcing $22 billion in customer deposits and strong demand. Three executives also sold shares. Q3 revenue was $41.46 billion, up 345.72% YoY. Q4 guidance is $50.0 billion in revenue. The CEO's sale lacked clear 10b5-1 plan confirmation.

Nvidia plans to raise prices on AI servers by over 15% for customers like Microsoft, Google, and Oracle, citing soaring memory costs. The increases, effective early next year, vary by chip generation and memory configuration. DRAM prices have surged due to high demand and limited supply, with HBM production consuming significant wafer area. Nvidia's gross margin of 75% suggests it can pass costs to customers, despite supply constraints from TSMC.

Nvidia plans to raise prices on AI servers by over 15% due to rising memory costs, affecting systems with Vera Rubin and Grace Blackwell chips. The hikes, set for early 2024, impact customers like Microsoft, Google, and Oracle. The move highlights memory chip makers' leverage amid high AI demand, with Nvidia's profitability stemming from strong chip demand and limited supply.