NVIDIA (NVDA) projects 75% gross margin for FY 2025
In its coming fiscal year, NVIDIA is looking to rake in a handsome profit on its various products and services.
With NVIDIA reporting on its Q1 2025 earnings results today, the company released a wealth of other stats about what’s going on with its business. That included an interesting metric about what NVIDIA expects its gross margins to be for its FY2025. Simply put, the company looks set to rake in a massive amount of cash on the back of its many products, including work in AI, chip technology, GPUs, CPUs, and much more.
NVIDIA released the metrics on its FY 2025 gross margins in its Q1 2025 earnings results on its investor relations page this week. There, the company shared that it now expects its gross margins to be between 74.8 percent and 75.5 percent, averaging in just above the 75 mark. On the flipside, its GAAP and non-GAAP operating expenses are expected to be in the range of $4 billion and $2.8 billion with full year operating expenses expected to be in the 40 to 45 percent range.
Source: Google
What this means is that NVIDIA is making a massive amount of money on the products it sells for the cost it takes to make them, which is good news for its business throughout the coming year. The company has excelled in the AI field, bringing cutting edge innovation to AI and using that innovation to assist in large sectors of the tech industry from medical fields to gaming, to generative AI applications. With its continued success, the company also announced a 10-for-1 stock split with increased dividends coming in early June.
With NVIDIA continuing to be a seemingly unstoppable force in the current tech landscape, it will be interesting when and if the company peaks as it continues to grow and sell so well. Stay tuned as we continue to report on this and further financial tech and gaming news here at Shacknews.
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replyTJ Denzer posted a new article, NVIDIA (NVDA) projects 75% gross margin for FY 2025
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NVIDIA has earned their success through a lot of extremely innovative work, but damn, I really wish other players in the market could compete.
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On on the one hand, good for them.
On the other hand, they are clearly overcharging because demand is basically inelastic for these H100s and H200s.-
Do you think there’s a reasonable shot for this other companies to catch up? nvidia doesn’t actually manufacture these chips, they just design them. Super low capital costs. While they’ve cornered the market now they can afford to pay top dollar for talent. Intel may have an in here, if they can develop something comparable they don’t have to pay margins to TSMC for manufacturing.
Still—75% margins….crazy. NOT QUITE MARIOKART 8 levels but they got volume!
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Keep in mind that Nvidia has said that the costs of producing GPUs has just BECOME SO HIGH because TECHNOLOGY, and that's why it costs you an arm and a leg to buy their GPUs.
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I assume the price they can get on AI gpus for business, yet without significantly increased production cost compared to consumer gaming gpus, is so high that they're raking in cash. It does make me wonder why they'd even bother being in the gaming market at all, though.
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Yeah, it's probably becoming increasingly irrelevant to their bottom line.
But if they can make money with little effort, then why the fuck not, right?-
Making gaming GPUs is not 'little effort', which is why Nvidia still dominates the competition in that sector as well
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That and a marketing department convincing everyone they need ray tracing or they'll be missing out on the full glory of all 50 titles that have come out in the last 8 years supporting it.
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TSMC has been spending $30-40bn+ per year on capex for chip fabrication for years. Their new fab in Arizona will be a $40bn investment (some of which is government subsidized). These are indeed higher costs than previous fabs. And then you have the costs from Nvidia and others on top of that to design, test and use their fabs. This is some of the most advanced machinery in human history. Nvidia is producing the best versions of this hardware and they cannot produce enough to meet demand and customers continually happily pay higher prices because they get so much utility from the product.
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