NVIDIA, TSMC and INTEL gross margin

[user nl]

From yesterday's NVIDIA investor call:

https://finance.yahoo.com/quote/NVDA/earnings/NVDA-Q4-2026-earnings_call-409967.html
Colette Kress
EVP and CFO
......
We expect most of our growth to be driven by data center. Consistent with last quarter, we are not assuming any data center compute revenue from China in our outlook. GAAP and non-GAAP gross margins are expected to be 74.9% and 75% respectively, ±50 basis points. For the full-year, we continue to see gross margins in the mid-70s.


It seems that NVIDIA is still able to obtain these large gross margins of 75% also in 2026. That will give a lot of "support" for TSMC to obtain also gross margins in 2026 of around or above 65%. Apple is paying a lot more for memory in (2H)-2026, in general all memory makers seem to be doing very well with the AI-super cycle in 2026/2027.

So, it seems quite "reasonable" that TSMC will also charge "value-based" prices for their leading edge (2,3 nm) nodes to their top customers Apple, NVIDIA, AMD, Broadcom etc.. So, I would think ~>65% gross margins for TSMC the coming years seem very "reasonable"?

It will probably be a while before INTEL Foundry can also charge gross margins way above 50%........A long way to go for INTEL......

 

[MKWVentures]

It will probably be a while before INTEL Foundry can also charge gross margins way above 50%........A long way to go for INTEL......

So Intel's IFS margins are NEGATIVE 50%. 18A is listed as a headwind to margins. Ramping 14A will hurt margins according to CFO

If IFS had 50% more revenue .... at zero cost.... they would not break even. If IFS had 100% of Global foundries revenue.... at zero cost.... they would not break even.

The plan to be successful was to have 4-6 new fabs running the most advanced processes and 5B+ in external revenue. They have one advanced fab, running today at <50% capacity, trivial external revenue. They are adding Intel 7 Capacity as we speak,

The new plan to have a reasonable margin is have 10B in external revenue, 2-3 Fabs on each process, and reduce costs to get within 20% of TSMC. IF this is possible, we are talking 2031+