Updated
Updated · TechCrunch · Jul 9
Nvidia Shares Drop 15% as H100 Compute Falls From $3.20 and Micron Nearly Triples
Updated
Updated · TechCrunch · Jul 9

Nvidia Shares Drop 15% as H100 Compute Falls From $3.20 and Micron Nearly Triples

3 articles · Updated · TechCrunch · Jul 9

Summary

  • Nvidia has slid 15% from its May peak even as revenue forecasts keep rising, leaving the AI chip leader trading cheaper on projected earnings than the S&P 500 average.
  • H100 spot compute prices have fallen steadily from about $3.20 an hour in May as last year's GPU shortage eased and more accelerator supply reached the market.
  • Micron has nearly tripled over the same period because data centers now face a memory bottleneck, with high-bandwidth memory demand outpacing supply and DRAM-related prices rising sharply.
  • Google, Amazon, Microsoft and OpenAI have all pushed custom processors to reduce reliance on Nvidia, adding pressure on compute pricing while no comparable wave of new DRAM suppliers has emerged.
  • The shift extends the recent AI-trade rotation: investors are moving from GPU leaders toward memory makers as the scarce, most profitable part of data-center buildouts changes.

Insights

As custom silicon from giants like Microsoft and Google rises, is Nvidia's software empire finally starting to crumble?
Nvidia's stock plunged $1 trillion. Was this caused by rivals, or by the simple lack of electrical power?