Nvidia‘s stock has fallen 15% since its May peak, even as revenue continues to grow, because the GPU shortage has eased and competition from custom processors (Google, Amazon, Microsoft, OpenAI) is driving down the spot price of compute.

Meanwhile, high-bandwidth memory (HBM) from companies like Micron has become the new bottleneck: DRAM spot prices have risen tenfold over the past year, and Micron’s stock has nearly tripled.

The asymmetry is simple: no one is making their own DRAM, so memory suppliers enjoy pricing power that Nvidia has lost.

Nvidia’s own success in proving the value of AI compute has attracted many competitors, while simpler memory companies capture the upside.