During Nvidia's earnings call, the company's gross margin guidance was repeatedly brought up by analysts.
Nvidia expects gross margins in the 'low 70s' in the current quarter but anticipates improvement to the 'mid 70s' later in the fiscal year.
The company's increased costs from accelerating the production of Blackwell systems and chips to meet demand contributed to the lower gross margin guidance.
Nvidia's gross margin growth potential is attributed to factors like further ramping up the Blackwell architecture and exploring opportunities to improve costs.