NVIDIA Corporation (NVDA) reported a GAAP gross margin of 75% and a non-GAAP margin of 75.2% in the fourth quarter of fiscal 2026, reflecting strong demand for its AI chips and an advantageous product mix. The company projects margins of 74.9% and 75% for the first quarter of fiscal 2027, indicating confidence in sustained profitability. The elevated margins stem from the pricing power of NVIDIA’s advanced AI chips and a robust integrated ecosystem that minimizes pricing pressure.
In contrast, competitors Advanced Micro Devices, Inc. (AMD) and Intel Corporation (INTC) are struggling to match NVIDIA’s profitability. AMD reported a non-GAAP gross margin of 57% in Q4 2025, focusing on competitive pricing for its MI300 series accelerators. Intel’s Gaudi series AI accelerators boasted a non-GAAP gross margin of 37.9% in the same period, underlining the challenges in competing effectively on profitability.
Over the past year, NVIDIA’s stock has risen approximately 57.9%, outpacing the Zacks Semiconductor – General industry’s gain of 46.1%. The Zacks Consensus Estimate suggests a significant year-over-year earnings increase of about 66.9% for fiscal 2027, followed by a 30.7% increase in fiscal 2028.
