Cost of Revenue: Key Insights for NVIDIA Corporation and Applied Materials, Inc.

Cost of Revenue: A Comparative Analysis of NVIDIA and Applied Materials

In the ever-evolving tech industry, understanding the cost of revenue is crucial for evaluating a company's financial health. This analysis focuses on two giants: NVIDIA Corporation and Applied Materials, Inc., from 2014 to 2024. Over this decade, Applied Materials consistently maintained a higher cost of revenue, peaking at approximately $14.3 billion in 2024, a 173% increase from 2014. Meanwhile, NVIDIA's cost of revenue surged by an impressive 792%, reaching $16.6 billion in 2024. This growth reflects NVIDIA's aggressive expansion and increased production costs, likely driven by its dominance in the GPU market. In contrast, Applied Materials' steadier growth suggests a more stable operational model. These insights highlight the dynamic nature of the tech industry, where strategic investments and market positioning significantly impact financial outcomes.