The company is boosting its long-term addressable market, and the expanding use of AI could play a role in its growth.
In this video, I will talk about Nvidia (NASDAQ: NVDA) and what investors should expect after Intel's and AMD's earnings reports. Now that Nvidia has soared 90% since its 52-week lows, the expectations are sky-high.
If its profit margins are low, then it could easily swing to a loss if it faces headwinds or the economy as a whole struggles. A higher profit margin can also create an important buffer for the business, allowing it to reduce prices if it needs to be more competitive or to better handle inflationary pressures. Three businesses that are performing exceptionally well with profit margins of 20% and higher include AbbVie (NYSE: ABBV), Nvidia (NASDAQ: NVDA), and Visa (NYSE: V).