Nvidia: Blackwell Ramp Hit Gross Margin, Expecting Low 70s
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Nvidia's stock declined despite a strong Q3 FY2025 earnings report due to high expectations and a narrowing EPS beat. The company is prioritizing Blackwell production, which is expected to boost revenue but will lead to gross margin contraction, with margins anticipated to decline until 2H FY2026.
November 21, 2024 | 4:00 pm
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Nvidia's stock pulled back after Q3 FY2025 earnings due to high expectations and a narrowing EPS beat. Blackwell production is expected to boost revenue but will lead to gross margin contraction, with margins anticipated to decline until 2H FY2026.
Nvidia's stock decline is attributed to high expectations and a narrowing EPS beat despite strong earnings. The focus on Blackwell production is expected to increase revenue but will result in gross margin contraction, impacting investor sentiment negatively in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100