Silicon AnalyticaGlossary · Business & metrics
What is gross margin?
Gross margin is revenue minus cost of revenue, expressed as a percentage of revenue. It shows how much of each sale is left after the direct costs of making the product.
Why it matters for investors
In semiconductors, gross margin reflects pricing power, product mix, manufacturing costs and, for chipmakers with their own factories, how fully those factories are used.
Companies define cost of revenue slightly differently and may report both GAAP and non-GAAP margins, so comparisons should use the same basis. Silicon Analytica labels the basis next to each figure.
Key companies
Related terms
Related analysis
- CompaniesASML's record quarter and a supply gap that now stretches to 20285 Nov 2026 · 6 min
- CompaniesTSMC's record quarter: revenue up 51%, margins slip on 2 nm ramp5 Nov 2026 · 2 min
- ManufacturingTSMC's Q2 2026 revenue reaches US$40.20B, up 33.7%8 Oct 2026 · 5 min read
- CompaniesNVIDIA's quarterly revenue reaches $96.2B, up 106%26 Aug 2026 · 4 min
- CompaniesAMD's revenue rises 50% to a record $11.5B4 Aug 2026 · 3 min read
- CompaniesASML raises its 2026 outlook to €43–45B (~US$48.2–50.4 billion)15 Jul 2026 · 3 min
General educational explanation. Information only, not investment advice.