Nvidia’s Margins Drop to 71% but Expected to Recover in 2H: Bank of America

Bank of America says Nvidia’s switch to the Blackwell architecture has reduced its profit margins from 79% to 71%. This is due to higher costs, manufacturing delays, and the complexity of AI systems. However, analyst Vivek Arya expects margins to recover to the mid-70% range in the second half of the year as Nvidia gains more pricing power and supply chains improve.