That's gross margin and it was 56% when I last checked. However, net margin is only about 16% which is the same as what they were making 12 years ago. If 16% is STILL all they make then the current prices are because it genuinely costs much more money to make a GPU.
Their current Gross margins are close to 70% and will be 70% according to Nvidia next quarter.
If you are talking about the yearly net figures,it usually is between 25% to 35% net margins:
NVDA (NVIDIA) Net Margin % as of today (November 15, 2024) is 55.26%. Net Margin % explanation, calculation, historical data and more
www.gurufocus.com
That is higher or on par with Apple:
Apple (AAPL) Operating Margin % as of today (November 15, 2024) is 31.17%. Operating Margin % explanation, calculation, historical data and more
www.gurufocus.com
Last reported quarter was almost 30% net margins which is around Apple level.
That 16% figure is for last year and Nvidia overproduced too much stock for crypto(probably):
Nvidia's Q4 revenue decreased by 21%, significantly impacted by its gaming market platform which saw a YoY decrease in revenues. Read my thoughts on NVDA stock here.
seekingalpha.com
Consumer dGPU sales are down and there was over $5 billion of built-up inventories. That most likely was factored into last years margins as a GAAP cost,which is hinted at late last year.
This has to do with a softening consumer market and too much inventory. It also affected BOTH AMD and Intel too because of unsold inventory. AMD did something similar last quarter too AFAIK.
PCMR has very short memories. In 2018,Nvidia overproduced too much Pascal dGPUs for the mining boom of 2017,so had similar inventory build-ups. So Turing was also released at a relatively high price.
Everytime dGPU sales have dipped a large amount and there is a large backlog of inventory,Nvidia has gone and released a sidegrade generation.
The question is,if the consumer dGPU sales slump continues will they refresh the range and drop margins a bit,or try and produce less dGPUs at a higher margin? We will find out in the next 6~9 months.