Nvidia (NVDA) CFO Colette Kress told investors last week that the company is seeing "extreme pricing conditions in memory," that the increases have "exceeded our prior expectations," and that they are "headed even higher into next year." Colette Kress said this in prepared remarks on Nvidia's fiscal second-quarter earnings call on Aug. 26, and then delivered the line companies almost never say plainly: "As a result, we are resetting expectations today."
Memory is not an exotic part. It is the DRAM in a phone, the RAM in a laptop, the storage in a game console, and one of the most expensive ingredients in a graphics card… and three companies make nearly all of it. Kress was describing the market for AI server memory, not the shelf price of a laptop, and Nvidia said nothing at all about consumer devices. But those products draw on the same suppliers and the same fabs, which is why a chip company's margin guidance is worth reading even if you never buy a chip.
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#colette #expectations #Companies #never
Memory is not an exotic part. It is the DRAM in a phone, the RAM in a laptop, the storage in a game console, and one of the most expensive ingredients in a graphics card… and three companies make nearly all of it. Kress was describing the market for AI server memory, not the shelf price of a laptop, and Nvidia said nothing at all about consumer devices. But those products draw on the same suppliers and the same fabs, which is why a chip company's margin guidance is worth reading even if you never buy a chip.
Why It's Time to Load Up on SoFi Stock
A $1.4 Billion Reason to Buy GameStop Stock Now
TIME Left Nvidia CEO Jensen Huang Off Its 100 Most Influential People in AI List — But Paris Hilton and Ben Affleck Made the Cut
#colette #expectations #Companies #never
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