Re:Nvidia is now a $1T company
by adam_arthur on Tuesday May 30, 2023 @11:09AM
(#36125774)
I've thought the same.
It seems to me that they don't use their moat to really drive price. I don't know if it's cultural or what, but they could easily extract higher prices given their position. I seriously doubt Apple, AMD or NVDA would walk to another fab and give up a huge performance edge in their offerings.
While TSMC's gross margins are 60% which is already quite high, their customers also have close to 50% margins... which implies room for higher chip prices
It seems to me that they don't use their moat to really drive price. I don't know if it's cultural or what, but they could easily extract higher prices given their position. I seriously doubt Apple, AMD or NVDA would walk to another fab and give up a huge performance edge in their offerings.
While TSMC's gross margins are 60% which is already quite high, their customers also have close to 50% margins... which implies room for higher chip prices