Part 3/9:
Despite these positive earnings, Wall Street expressed concerns over a decline in Nvidia's gross margins, which fell to 73% in the fourth quarter, marking a 30-point drop year-over-year. The CFO attributed this to the accelerated manufacturing of Blackwell chips, assuring that margins are expected to recover to the mid-70s later in the year. Notably, the gross margins averaged 75% over the last 12 months, indicating solid profitability.
The gaming segment saw a 9% increase, while professional visualization and automotive revenues grew by 21% and 55%, respectively. Even though these segments represent only 11% of total revenues, their growth signifies a broader operational strategy enhancing Nvidia's diverse portfolio.