While Nvidia’s record quarterly revenue ($96.22bn, +106% YoY) and accelerated Rubin production reaffirm its structural AI dominance, the supply chain market narrative is shifting toward component pricing power. The projected Q4 gross margin dip to 71–72%—driven by soaring HBM and memory component costs—signals that key supply chain partners like memory manufacturers and optical module suppliers are capturing a larger share of the AI hardware value chain. Rather than a late-entry rally for Nvidia itself (which faces near-term margin compression and historic post-earnings sell-offs), the supply chain rally has strong fundamental backing as capex spending converts directly into high-margin revenue for critical memory and packaging vendors.
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