Nvidia has gross margins above 70%, its server hardware partners would be lucky to break 7% and things won’t get better
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Posted in HPE

Nvidia has gross margins above 70%, its server hardware partners would be lucky to break 7% and things won’t get better

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  • AI servers boost revenue but have far lower margins than traditional servers
  • AI server sales are hugely unpredictable, with revenue fluctuating massively
  • Companies like Dell offset low AI margins with storage, networking, and support

The…

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https://www.techradar.com/pro/the-dirty-little-secret-about-ai-hardware-that-you-should-know-about-server-vendors-have-to-wrestle-with-wafer-thin-margins-and-bigger-customers

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