Nvidia forecasts gross margin will decline to 71-72% in Q4 fiscal 2027 due partly to memory prices.
“ — Kif Leswing Nvidia said it expects gross margin to decline and bottom out in the fourth quarter of fiscal 2027, in the range of 71% to 72%, partially due to memory prices. ”
Nvidia is guiding gross margins down to 72-73% next year after repricing products to reflect absorbed cost increases.
“We have also repriced our products in the marketplace, and based on that, our margins are going to come down from 75%. But it will be between 72% and 73% next year.”
Nvidia reset market expectations on gross margins after absorbing cost increases rather than continuing to defer the issue.
“This quarter we decided that we would rip the Band-Aid off, reset expectations about our gross margins, and just explain to people that in fact, we have now absorbed the cost increases,”