Nvidia’s Financial Performance and Market Challenges
Nvidia (NASDAQ: NVDA) reported a significant year-over-year revenue growth of 62% for the third quarter of fiscal 2026, ending October 26, 2025, following a 56% increase in the previous quarter. The rise in demand for its AI chips has led to Nvidia’s stock increasing approximately 35% year-to-date. However, the company faces a concentration risk, with one customer accounting for 22% and another for 15% of its total revenue, which raises concerns about dependency on a limited customer base.
Competition is intensifying as major tech firms like Alphabet (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN) develop their own AI chip technologies, such as Google’s Tensor Processing Units and Amazon’s Trainium. These moves indicate that Nvidia’s lead may be challenged as these companies capture more market share. Moreover, Nvidia’s current price-to-earnings ratio stands at around 45, significantly higher than other tech giants like Alphabet and Amazon, which are priced between 30 and 34. This has led to speculation about whether Nvidia’s stock has become overvalued amid rising competition.
