Nvidia Reportedly Earns 1000% Profit On Every H100 GPU Sale

Expert Verified By

Current Stock Of H100 GPUs Already Sold Out!

According to a report from Senior Writer Tae Kim from Barron’s, Nvidia is currently making up to a staggering 1000% profit on the sale of every H100 Hopper graphics card accelerator.

These profit margins, when converted to dollars, are up to $30,000 for the sale of each High-Performance Computing accelerator. Despite the selling price, it only costs around $3,320 for Nvidia, including the cost per chip and other components used on the PCB.

Even though Nvidia has incredible profit margins, it is not just the physical costs that are included in the making of a product. These include costs like product development and R&D that take a massive chunk of the budget before a product like H100 is manufactured. 

Furthermore, Glassdoor estimates the average salary for an electronics hardware engineer at Nvidia is around $202,000 annually. Considering the number of engineers and the hours spent on the development of a graphics processing chip like the H100 Hopper, costs start to add up.

Nvidia is currently the sole manufacturer of the H100 Hopper graphics card accelerator and is expected to make an estimated $31 billion from the recent AI HPC boom. Nvidia has also sold all of the stocks of the H100 Hopper graphics card accelerator, and new stock is not expected before 2024.

With this new profitable sector, Nvidia might shift its attention from the desktop gaming graphics card space since the current RX 40-series graphics cards are not doing too well on the market.

A recent report also claimed Nvidia aims to focus on the mobile sector to make up for the lack of demand in the desktop graphics cards segment. However, no other category can be compared to the AI accelerator market, which is expected to be worth around $170 billion by 2027.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

GTA 6 Online Aiming To Feature 96 Players Per Server, Report Claims

Rockstar insider Fravilys claims that GTA 6 Online may feature up to 96 players on each server instead of the current 32 limit.

Microsoft Reportedly Killing Xbox One Backward Compatibility With Next-Gen Console

According to an insider, Microsoft is reportedly discontinuing Xbox One backward compatibility with the next-gen console, if it is a PC.

Stalker 2 Heading To PS5 Late 2025; PS5 Pro Enhancements Also Confirmed

Stalker 2 has been officially announced for the PS5 after several months of console exclusivity, with plans to launch the game in Fall 2025.

Ex-Naughty Dog Dev Moving To Japan To Form New Studio After Last of Us Multiplayer Cancelled

Following Last of Us Multiplayer title's cancellation, the game director left Naughty Dog and is moving to Japan to form a new studio.

G.SKILL Launches High-Capacity DDR5 Memory Kits Up to 256GB at DDR5-6000

G.SKILL launches DDR5 memory kits up to 256GB DDR5-6000 CL32 and 128GB DDR5-6400 CL36, optimized for AMD EXPO and Intel XMP platforms.