NV

NVIDIA Corporation stock research

Oct 29, 2023

FY2024 Q3

NVIDIA (NVDA) Gross Margin — Quarter Ended Oct 29, 2023

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose but at a slower pace. Consequently, gross profit and gross margin improved relative to both periods.

Gross margin takeaway

Quarter ended Oct 29, 2023 · FY2024 Q3

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose but at a slower pace. Consequently, gross profit and gross margin improved relative to both periods.

  • The primary observable driver of the gross margin improvement is the faster growth in revenue compared to the growth in cost of revenue.
  • Gross margin was higher than the immediately preceding quarter and significantly higher than the same quarter one year earlier.

Gross margin snapshot

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

Gross margin

74.0%

Gross profit

$13.4B

Revenue

$18.1B

Cost of revenue

$4.7B

Quarter-over-quarter change

+3.9 pts

Year-over-year change

+20.4 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jan 29, 2023$6.1B$3.8B$2.2B63.3%
Apr 30, 2023$7.2B$4.6B$2.5B64.6%
Jul 30, 2023$13.5B$9.5B$4.0B70.1%
Oct 29, 2023$18.1B$13.4B$4.7B74.0%

Quarterly comparisons

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

Previous-quarter change

Jul 30, 2023

+3.9 pts

Year-over-year change

Oct 30, 2022

+20.4 pts

What the margin says

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

The primary observable driver of the gross margin improvement is the faster growth in revenue compared to the growth in cost of revenue.

Gross margin was higher than the immediately preceding quarter and significantly higher than the same quarter one year earlier.

Monitor the trend in cost of revenue as a proportion of revenue.