Nvidia posts earnings beat, but future margins are a 'little concerning': What Wall Street is saying

Published On Feb 27, 2025, 7:36 AM

Nvidia reported strong earnings, with quarterly revenue up 12% sequentially and 78% year-over-year, and datacenter sales more than doubling. However, there are concerns about future gross profit margins, projected at around 71%, which some analysts view as a sign of increased pricing pressure and competition, particularly from AMD. Despite these concerns, several analysts have reiterated buy ratings on Nvidia, citing strong demand and a solid outlook for the Blackwell chip production ramp-up as potential growth catalysts. Nvidia's CEO indicated confidence in meeting demand, and improvements in margins may come later this year as production stabilizes.