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Valued-Added Platforms’ Role in NVIDIA’s Gross Margin

Valued-Added Platforms’ Role in NVIDIA’s Gross Margin

NVIDIA’s (NVDA) gross margin has improved over the years because of its rich product mix. Product mix refers to the percentage of revenue NVIDIA earns from a particular platform. Between 2017 and 2018, its data center mix rose significantly from 12% to 20% as revenue from Tesla GPUs rose 133% YoY (year-over-year).