NV

NVIDIA Corporation stock research

Apr 30, 2023

FY2024 Q1

NVIDIA (NVDA) Gross Margin — Quarter Ended Apr 30, 2023

Revenue and gross profit both increased from the prior quarter, while cost of revenue rose proportionally less, resulting in a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue decreased more sharply, leading to a slightly lower gross margin.

Gross margin takeaway

Quarter ended Apr 30, 2023 · FY2024 Q1

Revenue and gross profit both increased from the prior quarter, while cost of revenue rose proportionally less, resulting in a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue decreased more sharply, leading to a slightly lower gross margin.

  • Gross margin improved sequentially as cost of revenue grew at a slower rate than revenue. The year-over-year comparison shows a stable gross margin, with cost of revenue declining in line with revenue.
  • Sequentially, revenue, gross profit, and gross margin all improved. Year over year, revenue and gross profit declined, but gross margin remained relatively stable due to a proportionate reduction in cost of revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

64.6%

Gross profit

$4.6B

Revenue

$7.2B

Cost of revenue

$2.5B

Quarter-over-quarter change

+1.3 pts

Year-over-year change

-0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 31, 2022$6.7B$2.9B$3.8B43.5%
Oct 30, 2022$5.9B$3.2B$2.8B53.6%
Jan 29, 2023$6.1B$3.8B$2.2B63.3%
Apr 30, 2023$7.2B$4.6B$2.5B64.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jan 29, 2023

+1.3 pts

Year-over-year change

May 1, 2022

-0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin improved sequentially as cost of revenue grew at a slower rate than revenue. The year-over-year comparison shows a stable gross margin, with cost of revenue declining in line with revenue.

Sequentially, revenue, gross profit, and gross margin all improved. Year over year, revenue and gross profit declined, but gross margin remained relatively stable due to a proportionate reduction in cost of revenue.

Monitor the trend in cost of revenue relative to revenue, as its proportional change directly impacts gross margin stability.