Nvidia is raising prices on servers equipped with its artificial intelligence chips by more than 15 percent, notifying major customers that the increases will apply to systems delivered early next year. The price hikes affect servers using Nvidia's Vera Rubin and Grace Blackwell chips, driven by a sharp rise in memory chip costs. Server DRAM prices doubled in the first quarter of 2026, and memory now accounts for 25 percent of high-end rack costs.
Contract manufacturers building servers for Microsoft, Alphabet, and Oracle have also informed customers of the coming increases. The memory crunch extends beyond AI infrastructure. Apple raised product prices up to 20 percent in June, while Amazon increased Echo Dot prices by 60 percent. Deloitte projects AI-server DRAM prices could quadruple over 2026, with Gartner expecting the supply shortage to persist through at least the first half of 2027.
SK Hynix, Samsung, and Micron dominate global memory chip production. Nvidia, which maintains a 75 percent gross margin, will report second-quarter results on Wednesday.