Nvidia Stock Rises Modestly as Wall Street Applauds Blackwell Ai Sales but Notes Gross Margin Miss
Nvidia's stock rose premarket as Wall Street analysts reiterated their Buy ratings on the stock after Blackwell AI sales topped expectations, with the company's fourth quarter earnings beating estimates and showing the AI chipmaker has begun producing its Blackwell AI products at scale. Nvidia's Blackwell AI GPUs contributed $11 billion to the company's quarterly revenue in what CFO Colette Kress said was "the fastest product ramp in our company’s history." The company's revenue of $39.3 billion and earnings per share of $0.89 also topped Wall Street's estimates.
- The modest stock price increase suggests that investors are cautiously optimistic about Nvidia's ability to overcome production challenges and maintain its competitive edge in the AI chip market.
- How will Nvidia's focus on high-margin products, such as its Blackwell AI GPUs, impact the company's overall gross margin and profitability in the coming quarters?