Nvidia Reports Record Fiscal Q4 Revenue Amid AI Chip Competition
Nvidia (NASDAQ: NVDA) announced a record revenue of $68.1 billion for its fiscal fourth quarter, marking a 73% increase year over year and a 20% rise sequentially. The company is expected to report fiscal first-quarter 2027 results on May 20, predicting around $78 billion in revenue, which would equate to a growth rate of approximately 75% year over year.
However, significant competition looms as major AI customers like Google and Amazon are developing custom silicon alternatives. Broadcom (NASDAQ: AVGO) has secured long-term agreements to supply tensor processing units for Google and is co-developing custom accelerators for OpenAI. Meanwhile, Amazon’s chip division has reached a $20 billion annual revenue run rate, growing at over 100%, highlighting a potential threat to Nvidia’s market share.
As Nvidia’s stock valuation hovers near a price-to-earnings ratio of 46, analysts caution that any shift in demand could impact share prices significantly, especially with rapidly emerging alternatives from competitors like Amazon, which trades at a lower valuation of about 32 times earnings.
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