Nvidia Stock Climbs Despite Profitability and Product Concerns

Despite several concerns surrounding Nvidia Corporation (NVDA), its stock continues to rise, defying negative news during what appears to be a bull run. Broadcom, a top competitor, is reportedly financing about one-third of Anthropic’s $125.2 billion TPU lease commitments, which could impact Nvidia’s market position. Additionally, Nvidia has adjusted its fiscal year 2028 gross margin expectations to 72-73%, down from the 75% reported in Q2 FY27, indicating potential profitability issues with its Rubin product line compared to Blackwell.

Analysts now predict that Rubin’s significant volume increase may be delayed further into 2027, with Nvidia expecting it to account for only around 20% of Q3 data center revenue. These challenges have led to a mixed outlook, yet the stock remains bullish. Management’s forecast of approximately 70% FY28 revenue growth has regained focus, overshadowing the doom and gloom surrounding the company’s near-term prospects.