Nvidia Reports Record Revenue Amid AI Boom; Gross Margin Pressure Signals Growth for Micron
Nvidia reported a record fiscal second-quarter revenue of $96.2 billion, driven by strong demand in its data center segment which alone generated $89 billion. The company's gross margin remained stable at 75%, but management guided for lower margins ahead due to rising memory costs. The CFO attributed the expected decline in gross margin—projected to fall below current levels and reach as low as 71-72% by Q4—to increased expenses related to high bandwidth memory (HBM). This shift indicates that HBM has become a critical component of AI accelerator packages, benefiting suppliers like Micron Technology. Nvidia's guidance for the next quarter includes $108 billion in revenue with no compute sales expected from China. The company remains confident about its market position and is expanding commitments to key components, signaling continued investment in infrastructure.
Topics: AI gross margin memory suppliers semiconductors