Nvidia Resets Gross Margin Outlook to 72%-73% as It Absorbs Rising Costs
Updated
Updated · Fox Business · Aug 26
Nvidia Resets Gross Margin Outlook to 72%-73% as It Absorbs Rising Costs
3 articles · Updated · Fox Business · Aug 26
Summary
72%-73% is Nvidia’s new gross-margin target for next year, down from about 75%, after Jensen Huang said the company chose to “rip the Band-Aid off” and reset expectations.
Huang said Nvidia has absorbed higher costs and repriced products, aiming to remove investor anxiety over profitability even as demand for its AI chips stays strong.
4% share gains followed a blowout fiscal second-quarter earnings report and a strong outlook, with Nvidia saying fiscal 2027 second-quarter revenue should top $96 billion.
42,000 employees worldwide underscore Nvidia’s expansion, but Huang said a shortage of skilled labor is limiting how much demand the company can fully support despite broad hiring across chip, packaging and data-center projects.