NVDABULLISH

NVDA Gross Margin Analysis

75.0%

Higher than 67% of Technology sector peers

Updated 804h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs; NVIDIA's 75.0% means it keeps $0.75 of every sales dollar before other expenses.

Sector Performance

67th percentile

NVDA

75.0%

Sector Median

65.7%

Sector Avg

61.2%

Prior Period

74.9%(Aug 2026)

→ Stable

📊

Deep Analysis

Gross margin is the share of revenue left after paying direct production costs; NVIDIA's 75.0% means it keeps $0.75 of every sales dollar before other expenses.

That level sits well above the Technology sector median of 65.7%, placing NVIDIA in the 67th percentile among peers. The most recent two quarterly readings are 75.0% and 74.9%, a +0.1% quarter-over-quarter uptick, while the year-over-year change is not available and the 8-quarter trend direction is not reported. The margin is thus essentially flat at a very high level, with no sign of erosion. That combination of an already-high margin and a stable or slightly rising trend points to durable pricing power, reducing near-term earnings risk. This supports the overall BULLISH verdict, as strong gross margins give NVIDIA room to fund R&D and absorb cost pressures without hitting profitability.

Frequently Asked Questions

What does the Gross Margin tell investors about NVDA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does NVDA's Gross Margin compare to its sector?

NVDA's Gross Margin of 75.0% compares to a Technology sector median of 65.7%, placing it in the 67th percentile.

Who are NVDA's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ASML (53.0%), AMD (52.8%), MRVL (52.1%), SMTC (52.0%), CAMT (50.1%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.