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NVIDIA’s High Return on Equity Keeps Investors Interested

NVIDIA’s High Return on Equity Keeps Investors Interested

So far, we’ve learned that NVIDIA (NVDA) has significantly expanded its profit margins by leveraging its same GPU (graphics processing unit) architecture across various platforms. The move helped it overtake chip giant Intel (INTC) in terms of operating and gross margin in the second quarter of fiscal 2019. NVIDIA’s higher margins were the result of higher revenue, a higher ASP (average selling price), and operating leverage.