Nvidia’s R&D ratio plummets

And the award for the most misleading headline of the week goes to… Jon Peddie. The headline above is accurate, but what it leaves out is that Nvidia is still spending about the same amount of money each quarter in R&D (around $2.5 billion), while its sales have jumped 6.7 times. So, the ratio of R&D spending to sales plummeted. Nevertheless, $2.5 billion in R&D is more than many companies make in sales. If Nvidia had maintained its average pre-2023 R&D-to-sales ratio of 28%, it would have invested $6.2 billion in Q4’23. Nvidia’s revenue in calendar Q4’23 was more than