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Nauman khan
Mon, Mar 17, 2025, 8:54 AM 1 min read
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March 17 - In a caller note, Bank of America expert Vivek Arya outlined a challenging yet promising outlook for Nvidia (NVDA, Financial) amid its ongoing modulation to the caller Blackwell architecture. Arya noted that gross margins fell to 71% from a highest of 79% during the Hopper cycle, with manufacturing delays, rising input costs, and accrued overhead from analyzable AI strategy integrations weighing connected performance.
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Arya expects margins to rebound to the mid-70s percent successful the 2nd fractional of fiscal archetypal 4th (April) arsenic pricing powerfulness and proviso concatenation efficiencies improve. He emphasized that the method upgrades, ranging from precocious packaging and liquid cooling to intricate strategy configurations, people the astir important operational assistance Nvidia has encountered recently.
In addition, the expert suggested imaginable headwinds from China export restrictions that could impact cardinal spot models, but this request from extracurricular China whitethorn offset these impacts. Hence, Nvidia is rated arsenic a "Buy" with a $200 terms people by Bank of America and an upside imaginable of astir 64% implicit the adjacent 12 months.
This nonfiction archetypal appeared connected GuruFocus.
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