Nvidia CFO Colette Kress said gross margins are expected to be in the "low 70s" as Blackwell production ramps up before improving later in the year.

In its earnings release on Wednesday evening, Nvidia said it expects gross profit margins of 70.6% to 71% in the first quarter as it contends with the production ramp-up of its new Blackwell chip. That initially drove concern in the markets about peak AI demand — and perhaps peak Nvidia hype.

Key Takeaways Nvidia shares slid Monday, extending last week’s post-earnings losses amid concerns about AI spending and the potential impact of policies on tariffs and AI chip export restrictions.The Trump administration is reportedly seeking to tighten chip export curbs,