[paulmd]

Yes, this is the counterpoint to the “ 55.58% Net Profit Margin last quarter isn't consistent with a functioning market” thread above. Sure, selling shovels during a gold-rush is very profitable… and nvidia invested a long time in building the best shovels for a lot of years where the net profit of doing so was intensely negative. They built the prospector community up and sponsored the development of geological science that spurred advancement of knowledge and practice - using their products, of course.

(The Michelin star model of hardware sales - did you know that Michelin actually makes money from that book!? They’re not doing it because they’re financially disinterested, can you believe that!?!?)

Anyway net profit is more like 15% in a normal year. Recently it is actually lower, Ada is already lower margin than pascal for example.

It is only this high because nvidia finally struck good - and they spent a lot of effort and money that might never have pqidnoffZ