NVIDIA Corporation stock research
FY2023 Q4
NVIDIA (NVDA) Gross Margin — Quarter Ended Jan 29, 2023
Revenue increased slightly from the prior quarter, while cost of revenue declined, resulting in a higher gross profit and an improved gross margin. Compared to the same quarter a year ago, revenue was lower, but cost of revenue also decreased, leading to a gross profit that was lower and a gross margin that was slightly weaker.
Gross margin takeaway
Quarter ended Jan 29, 2023 · FY2023 Q4
Revenue increased slightly from the prior quarter, while cost of revenue declined, resulting in a higher gross profit and an improved gross margin. Compared to the same quarter a year ago, revenue was lower, but cost of revenue also decreased, leading to a gross profit that was lower and a gross margin that was slightly weaker.
- The strongest observable margin driver is the sequential reduction in cost of revenue, which fell more than the change in revenue, allowing gross profit to increase and gross margin to improve.
- Gross margin improved compared to the immediately preceding quarter, as revenue was higher and cost of revenue was lower. However, compared to the same quarter one year earlier, gross margin weakened, with both revenue and gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.3%
Gross profit
$3.8B
Revenue
$6.1B
Cost of revenue
$2.2B
Quarter-over-quarter change
+9.8 pts
Year-over-year change
n/a
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 1, 2022 | $8.3B | $5.4B | $2.9B | 65.5% |
| Jul 31, 2022 | $6.7B | $2.9B | $3.8B | 43.5% |
| Oct 30, 2022 | $5.9B | $3.2B | $2.8B | 53.6% |
| Jan 29, 2023 | $6.1B | $3.8B | $2.2B | 63.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 30, 2022
+9.8 pts
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential reduction in cost of revenue, which fell more than the change in revenue, allowing gross profit to increase and gross margin to improve.
Gross margin improved compared to the immediately preceding quarter, as revenue was higher and cost of revenue was lower. However, compared to the same quarter one year earlier, gross margin weakened, with both revenue and gross profit lower.
Monitor the company's operating cash flow, which decreased in the most recent fiscal year relative to the prior year, as noted in the management discussion.