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Axera Semiconductor CoHKSE:0600 Gross Margin % is 21.98% as of Dec. 2025, which is 7% below its 10-year median of 23.67. The stock has 3 warning signs investors should review. Among 1,010 Semiconductors companies, Axera Semiconductor Co ranks worse than 64.85% on this metric.
Axera Semiconductor Co (HKSE:0600) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Axera Semiconductor Co had a gross margin of 21.98% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Axera Semiconductor Co Gross Margin % Related Terms
Axera Semiconductor Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Axera Semiconductor Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Axera Semiconductor Co Gross Margin % Chart
Axera Semiconductor Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
Gross Margin %
25.87
25.74
21.02
21.59
Axera Semiconductor Co Quarterly Data
Dec22
Dec23
Dec24
Sep25
Dec25
Gross Margin %
0.00
0.00
20.98
0.00
21.98
HKSE:0600 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Axera Semiconductor Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Axera Semiconductor Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Axera Semiconductor Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Axera Semiconductor Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Axera Semiconductor Co (HKSE:0600) has a Gross Margin % of 21.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Axera Semiconductor Co and its competitors. This is near median its historical median of 23.67. Over the past decade, Axera Semiconductor Co's Gross Margin % has ranged from 21.02 to 25.87. According to the industry distribution chart, Axera Semiconductor Co ranks #655 out of 1010 companies in the Semiconductors industry, placing it in the top 64.9%.
Is Axera Semiconductor Co's Gross Margin % too high?
Axera Semiconductor Co's current Gross Margin % of 21.98% is near median its 10-year median of 23.67. Over the past 10 years, this metric has ranged from a low of 21.02 to a high of 25.87. The Semiconductors industry median Gross Margin % is 29.78. Axera Semiconductor Co's value of 21.98% is 26.2% below this industry median. Based on the distribution chart, Axera Semiconductor Co ranks #655 out of 1010 companies in the Semiconductors industry, which is below the industry midpoint.
How does Axera Semiconductor Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Axera Semiconductor Co ranks #655 out of 1010 companies for Gross Margin %. This places Axera Semiconductor Co in the lower half of its industry. The industry median Gross Margin % is 29.78. Axera Semiconductor Co's value of 21.98% is 26.2% below this benchmark. Historically, Axera Semiconductor Co's own Gross Margin % has ranged from 21.02 to 25.87 over the past decade. While the company's 10-year median is 23.67 vs. the industry median of 29.78, Axera Semiconductor Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.78, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axera Semiconductor Co's current Gross Margin % of 21.98% is 26.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Axera Semiconductor Co and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axera Semiconductor Co's current Gross Margin % is 21.98%, which is near median its own 10-year median of 23.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axera Semiconductor Co stock overvalued right now?
Axera Semiconductor Co (HKSE:0600) has a current Gross Margin % of 21.98%. The current Gross Margin % is 21.98%, which is near median its 10-year median of 23.67 and 26.2% below the Semiconductors industry median of 29.78. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Axera Semiconductor Co (HKSE:0600), the current Gross Margin % is 21.98% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Axera Semiconductor Co Ltd is principally engaged in the AI inference SoCs, delivering cutting-edge perception and computing platforms for edge and endpoint AI applications. It is building an AI computing infrastructure to make artificial intelligence accessible to everyone, creating an empowered future where AI improves lives for all. The company is focused on three business areas: on-device computing, smart vehicles, and edge AI inference, and is executing a plan to become a top-tier, internationally scaled, and well-capitalized industrial. Its product portfolio includes On-device Computing products, Smart Vehicle products, and Edge AI Inference products. The company derives the majority of its revenue from the sale of its On-device computing products.
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