WHO EATS MEMORY COSTS?

Summary from the TLDR AI newsletter

Nvidia plans to pass rising memory costs onto customers, with AI server prices set to increase by over 15% for systems shipping next year. While HBM costs rise, Nvidia's pricing strategy helps protect gross-profit dollars by treating HBM as a smaller part of the final accelerator price. The real challenge for Nvidia will come in FY28 when new memory generations and increased content might limit its ability to maintain margin percentages.