Since you failed to post any sort of source or actual content, one must think your only reason for posting this is to troll?
This is a common margin in the technology world. Nvidia isn't anything special in this regard, Cisco aim for similar, Google aims much higher as does Microsoft. There is a lot of risk in the industry and its value to people is clearly high enough they pay it.
Yeah, on the other hand: We all could buy a 7970 for $549 without hundreds of free games and more driver bugs than a Starship Troper can kill.
How was that called? Right: "Go premium" strategy.
Write a letter to AMD and thanks them for outsmarting themself.
/edit: Oh and: How is it possible to produce more chips on a 300mm^2 wafer than on another 300mm^2 wafer?!
You cant mix hardware and software margins as they are totally different.
But yes im sure people will pay it.
Im still not happy about "Record" margins though. just shows we are being squeezed
Because the chips are smaller and the wafers are getting bigger and 20nm has even bigger wafers
You don't like that the company is doing well and that investors are doing well?
Go live in a communist or socialist state if you think making money is evil. Nvidia makes a great product, and there's lots of demand. Without profits, companies leave the industry, and you don't get new products.
Get it?
And? It's not nVidia's fault that AMD is not competitive in the high end.
BTW: How is 300mm^2 bigger than 300mm^2?![]()
OP has no idea why a chip company needs 50%+ gross margins to stay in business.
His favorite company needs those margins to survive, he just doesn't get it.
And yes, he is trolling.
http://www.wikinvest.com/stock/NVIDIA_(NVDA)/Data/Operating_Margin
15.6% operating margin.
AMDs is negative, should Nvidia really be aiming for that too?
Mods can this troll thread please be removed?
Just to put this into perspective. That margin is higher than Apple which not so long ago was working on a 14% net margin.
I've got 32.1% here which is more than double Nvidia.
http://www.wikinvest.com/stock/Apple_(AAPL)/Data/operating_margin