NVIDIA: AI Growth Is Still Strong — But Margins Are the Question

NVIDIA continues to dominate the AI infrastructure story, with another record quarter highlighting just how strong demand for accelerated computing remains.

🚀 Key numbers:

• Revenue: $96.22B, up 106% YoY

• Data Center growth: +117% YoY

• Gross margin: around 75%

• Rubin is moving closer to full production

• Shares initially gained around 4% after hours

But there’s an interesting catch…

NVIDIA expects gross margins to come under pressure, potentially reaching the 71–72% range, largely because of higher component costs.

That raises an important question for investors:

Can NVIDIA maintain its extraordinary growth while protecting its margins?

The AI demand story clearly isn’t slowing down. The next generation of Rubin could create another major growth wave, but investors will be watching margins, supply-chain costs and execution very closely.

💭 My take: NVIDIA’s AI leadership remains extremely strong, but going forward, revenue growth alone may not be enough. The market could increasingly focus on how profitable that growth is.

Do you think NVIDIA’s supply chain and Rubin ramp can push the stock higher from here, or are margin pressures becoming a bigger risk?