Nvidia's Blackwell Chips Could Pressure Profit Margins -- Market Talk
Dow Jones02-27
1028 GMT - Nvidia's new Blackwell AI chips could squeeze the chip maker's profit margins more than anticipated going forward, Swissquote Bank's Ipek Ozkardeskaya writes in a note to clients. Blackwell chips proved to be more complex and costlier than expected, though demand remains strong, she says. Nvidia CEO Jensen Huang said demand for Blackwell is "amazing." The company logged $11 billion in sales from Blackwell chips in its fiscal fourth quarter ended Jan. 26. Those sales were led by large cloud service providers, representing roughly 50% of revenue in the group's data-center division. Nvidia shares are up 0.7% premarket at $132.23. (mauro.orru@wsj.com)
(END) Dow Jones Newswires
February 27, 2025 05:29 ET (10:29 GMT)
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