This Operating Metric Is Going to Make or Break Nvidia Stock on May 28
From Nasdaq: 2025-05-28 03:51:00
Wall Street AI favorite Nvidia is set to report Q1 operating results, with focus on revenue, EPS, and guidance. Nvidia’s growth is driven by AI-focused GPUs in high-compute data centers, leading to high demand and prices. CEO Jensen Huang’s innovation and annual chip launches have kept Nvidia ahead in the tech sector.
Nvidia’s GAAP gross margin has been a key metric in its success, reaching a peak of 78.4% in Q1 2025. However, a recent decline in gross margin is linked to increased competition in AI-accelerated data centers, both externally and internally. This competition threatens Nvidia’s pricing power and future market share.
Investors await Nvidia’s Q1 results, particularly focusing on the GAAP gross margin forecast. A rise in gross margin could boost Nvidia stock, while a continued decline may lead to further losses. The future of Nvidia’s pricing power and market dominance hinges on this crucial operating metric.
Read more at Nasdaq: This Operating Metric Is Going to Make or Break Nvidia Stock on May 28