During NVIDIA's earnings call, held after the market closed on Wednesday, it was disclosed that the company's gross margin would encounter short-term challenges, primarily stemming from the unexpectedly steep price surges in global memory chips, encompassing both DRAM and HBM. Specifically, the gross margin is projected to reach 74% in the third quarter of fiscal year 2027, before experiencing a slight decline to a trough of 71%-72% in the fourth quarter. However, with the implementation of product price increases and the introduction of new, high-margin products, NVIDIA anticipates a rebound in its gross margin to 72%-73% in fiscal year 2028, thereby sustaining robust profitability. Management emphasized that the price hikes in memory chips are a complementary trend, fueled by the burgeoning demand for AI computing. The escalating costs are indicative of an overall uplift in industry sentiment, signifying a benign form of inflation.