Nvidia’s projection for a further sequential drop in gross margins this quarter may be spooking investors. But Derren Nathan, the head of equity research at Hargreaves Lansdown, described the company’s situation colorfully.
“Many companies would chew their arm off for a mark up of over 70%, and that threshold doesn’t seem to be in danger any time soon,” he said in emailed comments.
Overall, he noted that Nvidia’s stock has “generated stellar gains for shareholders over many years now, and right now it’s pretty hard to see any major holes in the investment case.”