Reported 4 months ago
Nvidia reported exceptional fiscal first-quarter results, with net sales surging 262% driven by Data Center operations. However, despite announcing a stock split and dividend increase, the company's guidance for the fiscal second quarter suggests potential challenges ahead. Nvidia expects a decline in gross margin, indicating increasing competition from Intel and AMD in the AI-accelerator market, potentially affecting pricing power. Additionally, top customers like Microsoft, Meta Platforms, Amazon, and Alphabet developing their own AI-GPUs may reduce reliance on Nvidia's hardware in the future. Investors may need to consider these factors before investing in Nvidia.
Source: YAHOO