Nvidia's stock drops while memory prices spike
nvidia stock fell 15% from its may peak while dram prices increased tenfold as data centers hit a new bottleneck.
nvidia's market valuation slipped below the s&p average relative to earnings as its stock declined 15% from its may peak, while competitors like micron nearly tripled in value. this divergence stems from changing supply dynamics: gpu spot prices on marketplaces like ornn have fallen to around $3 per hour following eased shortages and increased competition from custom chips by google, amazon, and openai. simultaneously, dram spot prices increased tenfold over the last year, exposing memory as the new critical bottleneck in ai infrastructure. the trend suggests that while compute capacity is becoming more commoditized, memory scarcity will continue to drive infrastructure costs for the foreseeable future.