Nvidia Projects 75% Margins Through 2030 After Q1 Sales Soar 85%
NVDA•DA Davidson projects Nvidia’s gross margins will hover near 75% through 2030 as hyperscalers lack AI chip alternatives, following quarterly sales growth of 85% to $81.6 billion and adjusted gross margin of 75%. The company also sealed AI infrastructure deals in South Korea with SK hynix, SK Telecom and NAVER.
1. Long-Term Margin Outlook
DA Davidson projects Nvidia’s gross margins will remain around the mid-70% range through 2030, driven by hyperscalers’ heavy dependence on its AI data center chips and a lack of viable alternatives. This forecast underpins expectations for durable profitability in the face of rising capacity and infrastructure demands.
2. Record Q1 Growth and Profitability
In the latest quarter, Nvidia achieved year-over-year revenue growth of 85% to $81.6 billion, while maintaining an adjusted gross margin of 75%. These results highlight robust demand for its AI infrastructure solutions and reinforce its pricing power in the market.
3. Expansion in South Korea AI Infrastructure
Nvidia finalized partnerships with SK hynix, SK Telecom and NAVER to deploy its AI infrastructure technology across memory production, cloud computing services and sovereign AI initiatives in South Korea. These agreements extend Nvidia’s ecosystem reach and support local AI development strategies.
4. Deepening Synopsys Collaboration
Nvidia’s investment in Synopsys has evolved beyond chip design tools to include the Omniverse system-level design environment and GPU-accelerated simulation services. This collaboration aims to cut complex simulation times from months to hours, enhancing efficiency for AI-driven product development.
