3 Semiconductor Stocks to Buy Before August Ends

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,

AMD plans a $10B+ investment in Taiwan's semiconductor ecosystem, including advanced packaging and AI system manufacturing, through 2029. The funds will support partners scaling next-gen products like Helios AI racks. AMD's Data Center revenue grew 107% YoY to $6.7B in Q2, with expectations of 60%+ CAGR over 3-5 years. The company is expanding its supply chain beyond TSMC to meet potential AI demand, with significant capital commitments despite being fabless.

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.

NVIDIA has partnered with Cloverleaf Infrastructure to advance U.S. data center development, taking a minority stake in the company. Cloverleaf, founded in 2024, raises $300 million in its first year and acts as a middleman between utility companies and data centers. NVIDIA recently announced a $1.5 billion investment in SB Energy for a 10-GW data center project. The partnership aims to support AI factory development and meet increasing demand for accelerated computing.