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Nvidia CEO Reveals Gross Margin Reset Amid AI Boom
Nvidia CEO Jensen Huang downplayed concerns about the company's gross margins by 'ripping off the Band-Aid' and resetting expectations. Speaking in an interview, Huang revealed that Nvidia has absorbed cost increases and repriced its products to adjust for lower margins.
The chip giant reported a blowout earnings report after the close of trading on Wednesday, beating Wall Street estimates and sending shares up 4%. The company now expects revenue to surpass $96 billion in the second quarter of fiscal 2027.
Nvidia's gross margins will come down from 75% but remain between 72% and 73% next year. Huang emphasized that the company is creating jobs everywhere, including in chip plants, packaging plants, computer plants, and AI data centers.