NVIDIA's supply commitments climbed to $279 billion in the quarter ended July 26, up from $119 billion the quarter before. The company says the increase is primarily related to memory procurement. Morgan Stanley estimates that NVIDIA has claimed about 37.3% of global high-bandwidth memory (HBM) supply for 2027, with Alphabet at 36% and AMD at 12.1%.
That adds up to roughly 85%, leaving everyone else to split the rest. These are Morgan Stanley's estimates, as reported by The Inference. About $267 billion of the commitments come due by the end of fiscal 2029, according to the filing.
NVIDIA reported record revenue of $96.2 billion for the quarter, but memory costs are weighing on margins. Gross margin was 75% and is guided to 74% this quarter, with a trough of 71% to 72% expected in the January quarter. CFO Colette Kress tied that pressure to memory pricing.
Operating cash flow also fell to $24.1 billion from $50.3 billion the quarter before. Jensen Huang said on September 17 that he expects NVIDIA to sell twice as many chips next year, and the company's formal guidance is about 70% revenue growth.
Source: TechPowerUp News · Summarized by HeadlinesBriefing