This Analyst Says to ‘Stop and Smell the Roses’ After Nvidia Report

Bernstein analyst Stacy Rasgon understands why Nvidia’s declines could have found negatives in areas such as the company’s smaller-than-usual guidance, forecasts for lower gross margins and lower rate of attachment to networks.

Even though gross margins are expected to decline again in the current quarter, “frankly, we’re not going to complain about a few quarters at 71-72%, especially since they are driven by the efforts of the company to develop its new platforms as quickly as possible. possible to meet what appears at this point to be insatiable demand,” Rasgon wrote. And he noted that the company has “a trajectory back to the mid-70s as platforms evolve” until ‘to the financial year 2026.