Nvidia stock dips as earnings beat has investors 'yawning'

Published On Feb 27, 2025, 12:36 PM

Nvidia's stock fell over 3% after the company's earnings report showed higher revenue and earnings per share than expected, yet the gross margin forecast for the first quarter came in lower than analyst expectations. Nvidia expects a gross margin of approximately 71% compared to the previous quarter's 73%, which raised concerns among analysts about pricing pressures and competition. Despite these concerns, analysts noted strong demand for Nvidia's Blackwell AI GPUs, which significantly contributed to quarterly revenues.

Stock Forecasts

NVDA

Negative

Even though the market reacted negatively due to lower gross margin guidance, the strong demand for Blackwell GPUs and the overall revenue beat are encouraging. However, the anticipated slower margin may suggest increased competition or price pressures, creating uncertainty around future profitability.

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