Nvidia's Earnings Report: Focus on Gross Margin Amid High Expectations
The one number that will actually move Nvidia’s stock Wednesday night
Image: Fortune
Nvidia is set to report earnings with projected revenue of $78.8 billion and earnings per share of $1.77. However, analysts are particularly focused on the gross margin, expected around 75%, as it reflects the company’s pricing power and market position amid rising competition from hyperscalers like Microsoft and Amazon.
- 01Nvidia has outperformed Wall Street estimates in 21 of the last 23 quarters.
- 02The company's gross margin is crucial, with analysts expecting it to be around 74.5%.
- 03Competitors like Google and Amazon are developing their own chips, potentially impacting Nvidia's pricing power.
- 04Nvidia's gross margin is significantly higher than that of competitors like Walmart (24%) and Apple (46%).
- 05A gross margin below 74.5% could be viewed as a major negative indicator for Nvidia's stock.
Advertisement
In-Article Ad
Nvidia is anticipated to release a strong earnings report, with analysts forecasting a revenue of $78.8 billion, nearly 80% higher than last year, and earnings per share of $1.77. While these figures are impressive, the focus for investors will be on the company's gross margin, projected at 75%. This metric indicates how much profit Nvidia retains from each sale after production costs. Historically, Nvidia has consistently beaten Wall Street expectations, achieving this in 21 out of the last 23 quarters. However, the competitive landscape is evolving, with major customers like Microsoft and Amazon developing their own chips, which could pressure Nvidia's pricing. Analysts suggest that if Nvidia's gross margin falls below 74.5%, it could signal trouble for the company's stock, overshadowing any positive revenue numbers. Given Nvidia's current market dominance in the AI supply chain, the gross margin remains a critical indicator of its financial health.
Advertisement
In-Article Ad
Nvidia's earnings report could influence stock prices and investor sentiment in the tech sector, particularly affecting those invested in AI and semiconductor markets.
Advertisement
In-Article Ad
Reader Poll
Do you think Nvidia will maintain its gross margin above 75%?
Connecting to poll...
More about Nvidia
Nvidia reporta ganancias récord y anuncia recompra de acciones histórica
Okdiario • May 21, 2026
Analyse des mouvements boursiers après la clôture : NVDA, INTU, ELF, URBN, APLD
Investing French • May 21, 2026
Nvidia CEO Jensen Huang Reflects on the Challenges of Building the Most Valuable Company
Entrepreneur • May 20, 2026
Read the original article
Visit the source for the complete story.