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Nvidia's Margin Dilemma

Name: Nvidia's Margin Dilemma
Uploaded: 2025-11-20T12:40:36+00:00
Duration: 56 s
Channel: Anthony Cheung
Description: Nvidia's gross margin fell to 73.6% from 75%, despite controlling 90% of the AI chip market. The Blackwell Ultra chip's production costs are to blame…

20 Nov 2025 · 1 min

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Nvidia's gross margin fell to 73.6% from 75%, despite controlling 90% of the AI chip market. The Blackwell Ultra chip's production costs are to blame, and CEO Jensen Huang wants to hit 75% again by 2026, but rising complexity could keep margins under pressure.

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2 things to mention. Margins for the quarter just in is 73.6%, which, look, on a standalone figure is awesome. They got 90% market share, they've got pricing power, they can basically charge what they want on a 73.6% margin. Amazing. It's just the margins dropped, so the direction of travel for margin is down. It was 75%. Now look, Jensen said we're going to get it back up to 75% in 2026, but But will they? You know, their Blackwell Ultra, which is their latest chip, that's going to require a lot of investment. That's why their margins dropped. The Blackwell chip itself had some problems getting it up to kind of scale production, and so that cost more money, so the margin got eroded a little bit. So we're worried maybe that's going to happen again as these chips get ever more complex and advanced. Are they going to have to— is the cost of manufacture going to be on an uptrend, meaning margins on a downtrend?