Nvidia stock falls 15% as memory companies surge in AI infrastructure market
8 reported
According to a TechCrunch report, Nvidia’s stock price has fallen 15% since its peak in May, even as projected revenue continues to grow. The company is now cheaper than the S&P average, with investors paying less per dollar of Nvidia’s projected profit than for the typical large American company. Meanwhile, money is flowing into memory companies like Micron, which has nearly tripled in value over the same period. The GPU shortage that alarmed the industry last year has eased, while data centers require increasing amounts of memory. The spot price for an hour of time on an Nvidia H100 GPU peaked in May at around $3.20 and has since dropped steadily. In contrast, the spot price for DRAM memory chips has risen sharply since 2023, with prices increasing tenfold over the past year. Ornn co-founder and CTO Wayne Nelms attributed the disparity to supply and demand, noting that companies like Google, Amazon, Microsoft, and OpenAI have launched custom processors to reduce dependence on Nvidia, while no one is making their own DRAM.
What’s reported
Nvidia’s stock price has fallen 15% since its peak in May.
Nvidia is now cheaper than the S&P average based on projected earnings.
Micron has nearly tripled in value over the same period.
The GPU shortage that looked alarming last year has eased.
Spot price for an hour on an Nvidia H100 GPU peaked at around $3.20 in May and has since dropped.
DRAM spot prices have increased tenfold over the past year.
Google, Amazon, Microsoft, and OpenAI have launched custom processors to lessen dependence on Nvidia.
Ornn co-founder and CTO Wayne Nelms stated that no one is making their own DRAM.
Key figures
Wayne Nelms, Ornn co-founder and CTO
Sources: TechCrunch
