Citi expects Nvidia stock to trade higher post earnings

Nvidia reportedly plans to raise prices on AI server systems by over 15% starting early next year, affecting products like Vera Rubin and Grace Blackwell chips. The hikes are due to rising memory chip costs and will impact customers like Microsoft, Google, and Oracle. Nvidia is scheduled to report Q2 earnings on Aug 26. Reuters could not verify the report, and Nvidia did not immediately comment.

Nvidia plans to raise prices for AI servers by over 15% starting early next year, according to Bloomberg. The increase, driven by higher memory chip costs, will affect systems using Nvidia's Vera Rubin and Grace Blackwell processors. Major customers, including Microsoft, Google, and Oracle, have been notified. Nvidia's gross margin was 75% last quarter, and the company has historically absorbed rising input costs.

Nvidia has reportedly secured multi-year supply agreements for DRAM and HBM memory with SK Hynix and Micron until 2028, according to Edgewater Research. The move aims to address ongoing supply chain pressures and ensure long-term production stability for Nvidia's Rubin accelerators and data center GPUs.

Rothschild upgraded Apple to Buy, raising its price target to $400, citing a foldable iPhone launch and AI strategy shift. Wolfe Research remains bullish on AI semiconductor stocks, with Nvidia as its top pick. Bernstein upgraded Analog Devices to Outperform, citing strong results and guidance. Goldman reiterated MongoDB at Buy, expecting Atlas growth near 30%. Deutsche Bank downgraded SentinelOne to Hold after a strong rally.

Nvidia reported record Q1 2027 revenue of $81.6B, up 85% YOY, with Data Center revenue rising 92% YOY. Non-GAAP EPS grew 140% YOY to $1.87. Nvidia guided Q2 revenue at ~$91B, excluding China Data Center sales. Whale Rock Capital sold most of its Nvidia stake, but reasons are unclear. Analysts maintain a 'Strong Buy' consensus, with an average price target of $304.32, implying 42% upside.

NVIDIA plans to raise AI server prices by over 15% due to memory semiconductor shortages and increased costs, according to Bloomberg. The price hike, affecting systems like Vera Rubin and Grace Blackwell, will start in early 2024. The move follows similar actions by Apple and Qualcomm, and amid growing memory demand from AI investments.