Nvidia NASDAQ:NVDA remained in focus Wednesday after Wedbush said rising memory costs are reshaping the chipmaker's upcoming product lineup and could continue pushing graphics card prices higher,
Wedbush analyst Matt Bryson said Nvidia is expected to reduce memory capacity in its next-generation Vera Rubin platform because supply constraints appear to be outweighing cost considerations. The analyst said memory now accounts for about 29% of system cost, above the company's preferred level of roughly 20%, despite Nvidia's efforts to secure long-term supply.
Bryson said the Vera CPU in Nvidia's NVL72 platform is now expected to include 96GB of memory instead of the previously anticipated 192GB. Total rack memory could fall to about 28TB from 55TB, while high-bandwidth memory capacity for GPUs is expected to remain unchanged at 20.7TB.
Separately, Wedbush said Nvidia also appears to be raising prices for consumer graphics cards by 20% to 30%, following earlier increases this year, as higher memory costs continue moving through the supply chain. The firm said stronger demand for AI data centers may help offset weaker consumer electronics volumes. Nvidia shares edged lower by about 0.5% in morning trading.