One analyst expects Nvidia’s sky-high profit margins to persist
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Bloomberg Intelligence analyst Kunjan Sobhani said in a recent note that he expects Nvidia’s profit margins to remain well above the 70% level, which is high for a hardware manufacturer.
“Gross margin is likely to decline as much as expected in 4Q yet remain comfortably above 73%,” Sobhani said.
“Nvidia is likely to solidly exceed 3Q revenue consensus more than it did in the past two quarters and the company will likely raise 4Q guidance, driven by greater adoption of its Hopper family, even as hyperscaler customers await the Blackwell ramp-up in 2025,” Bloomberg Intelligence analyst Kunjan Sobhani said in a recent note.
Sobhani highlighted that Blackwell delay concerns were likely solved in the third-quarter, setting up the expectation that shipments “to key customers” will begin in the fourth-quarter.
“Increased capex guidance from hyperscalers has further boosted confidence in near-term sales. We expect small volume shipments of Blackwell in fiscal 4Q, reaching full speed in 1Q26, though supply remains constrained,” Sobhani said.
