This data is pretty staggering. If you want to know what is the original cost price and how much you can distribute them for, read on, we will analyze everything.
1000% profit for NVIDIA?
And it looks like NVIDIA is selling its high-performance computing (HPC) accelerators for between $25,000 and $30,000, sometimes staggering profits, according to a study published on Twitter (X) by Barron’s senior Tae Kim. We factor in the costs for it, totaling approximately $3,320.
Although all of this may be lacking in data and we are only talking about the pure manufacturing costs without considering others like R&D, distribution etc. Likewise, the average salary that NVIDIA pays workers who would develop this technology is about $202,000 per year, and there isn’t exactly a single worker.
In any case, those profits would still be very high and the multiplier benefit given the amount of sales the company can generate in a year. Just selling 7 or 8 products would have paid an employee’s salary for the whole year.
You only have to look at inventory issues to see that production is slower than sales due to supply and demand, and so is their cost. So if the companies that buy it continue to pay for it, it’s because they think it’s worth it, and that makes NVIDIA gold.
The AI accelerator market is estimated to be worth around $150 billion by 2027.
This has also caused the DDR5 memory manufacturers to pull themselves together as they have had to change and adjust their forecasts and devices to meet the production needs they will have in the near future. It is estimated that DDR5 memory will reach DDR4 parity in Q3 2024, a year or even less.
Seemingly, NVIDIA’s commitment to artificial intelligence They are not faring badly in such a risky way and more executives may be put into this technology in the months and years to come, all indicating that it has a very promising and long future ahead.
The brand expected to sell around 550,000 units of the H100 graphics cards this year 2023, with a forecast until 2027 that would generate around $300,000 million in sales, which could serve to reinvest in this technology and generate even more . This takes into account that these products will not continue to increase in value and will be paid more for them, which could multiply your income from one day to the next.
And you, what do you think about AI? Do you really think they are the future or a current trend and that it will go away in a short time?