NVIDIA reduces Rubin Ultra memory specifications from planned levels due to HBM supply shortage.

Nvidia is exploring reduced memory configurations for its upcoming Rubin Ultra GPU to address high-bandwidth memory (HBM) supply constraints, according to The Information. Sources familiar with the testing efforts say Nvidia has tested at least three versions of the Rubin Ultra graphics cards in recent weeks, with some versions featuring smaller memory capacities than the company's original specifications.

The move reflects supply-chain pressures on high-end memory chips. While Nvidia could compensate for reduced memory through other optimizations, the tradeoff has real implications: artificial intelligence companies deploying reduced-memory chips to run large models would need to use more chips than initially required, increasing infrastructure demands.

Nvidia's stock rose 0.04% to $219.30 as of press time. The company has gained momentum, rising for five consecutive trading days from July 30 to August 5, accumulating a 15.4% gain and hitting an intraday high not seen since June 3. The rally carried Nvidia past Apple to reclaim the world's largest market capitalization.

Wall Street's consensus price target for Nvidia stands at $308, representing approximately 40% upside from the latest trading level. The critical near-term milestone is the August 26 release of fiscal second-quarter 2027 financial results, covering the quarter that ended in July 2026. Investors will scrutinize whether revenue exceeds the company's $91 billion guidance, track acceleration in Blackwell Ultra shipments, and monitor whether gross margin can stabilize around 75%.

The Rubin transition looms as another key variable. As Rubin products move into mass production in the second half of the year, Nvidia's cycle shifts from Blackwell to its next-generation platform. Delays anywhere in supply chain, packaging, HBM, or system integration could quickly cascade into earnings pressures.