Nvidia’s Margins Are Safe This Decade So I Keep Loading Up as Fear Resonates

Earnings Impact 4
โดย 24/7 Wall St.·Read original
Summary · why it matters

Nvidia’s CUDA software lock-in sustains 75% gross margins even through GPU demand cycles and hyperscaler capex pauses, according to an analysis by 24/7 Wall St. Non-GAAP gross margin printed 75.0% in Q1 FY2027, with guidance of 75.0% plus or minus 50 basis points on revenue of $91.0 billion plus or minus 2%, while operating margin reached 65.6% and return on equity hit 114.3%. Free cash flow was $48.554 billion in the quarter and $96.575 billion for FY2026, and the board added $80.0 billion to the buyback authorization while raising the quarterly dividend from $0.01 to $0.25. The forward price-to-earnings ratio stands at 23 times against a PEG of 0.559, and Microsoft processed over 100 trillion tokens in Q1, a fivefold increase year over year, suggesting installed-base utilization is climbing faster than new capex and protecting margins.

Impact on stocks 4

Artificial Intelligence▲ · 4 stocks
NVIDIA Corporation
NVDA
▲ PositiveCapitalrelevance

Non-GAAP gross margin 75.0%, operating margin 65.6%, ROE 114.3%, FCF $48.554B in quarter, $80B buyback authorization, dividend raised to $0.25

Microsoft Corporation
MSFT
▲ PositiveDemandrelevance

Microsoft processed over 100 trillion tokens in Q1, a fivefold increase year over year, suggesting installed-base utilization is climbing faster than new capex and protecting margins

Theme Impact 4

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