otherScore 90/100Add to thesis
Huang: NVIDIA absorbed memory price increases, repriced products; gross margins to fall from 75% to 72-73% next year
“We have now absorbed the cost increases... we've also repriced our products in the marketplace and based on that our margins are going to come down from 75% but it will be between 72 and 73% next year.”
Why it matters
Confirms HBM/memory price inflation is materially impacting NVIDIA's cost structure, and NVIDIA is passing costs through via price hikes rather than fully absorbing them — a first-party quantification of margin trajectory.
Investment implication
Bullish for HBM suppliers (SK Hynix, Micron, Samsung) whose pricing power NVIDIA is validating; margin reset is now de-risked for NVDA but confirms memory cost inflation persists into next year.