By Daniel Sparks
Publication Date: 2026-04-24 13:03:00
Artificial intelligence (AI) chipmaker Nvidia (NVDA 1.41%) reports its fiscal first-quarter results next month, on May 20. And we can say with near certainty that the numbers will look impressive.
After all, the company’s most recent quarterly update was exceptional. In its fiscal fourth quarter of 2026 (the period ended Jan. 25, 2026), revenue rose 73% year over year to $68.1 billion. Data center revenue, specifically, climbed 75% year over year to $62.3 billion. And earnings per share nearly doubled.
Further, management guided for fiscal first-quarter revenue of $78 billion, plus or minus 2%. That would represent another sequential step higher from fiscal Q4.
So why wouldn’t I want to buy the stock before the report, especially with shares trading at a compelling-looking forward price-to-earnings ratio of just 25 as of this writing?
My concern is rising competition.
Image source: Getty Images.
Nvidia is still the dominant AI chip platform
Highlighting how dominant Nvidia remains, just look at its pricing power, evident by its incredible profit margins. Nvidia’s gross margin was 75% in fiscal Q4, up from 73% in the year-ago period.
These lucrative margins are a key part of the bull case. Nvidia isn’t just selling a lot of chips; it is selling them at very high margins because its graphics processing units (GPUs) — chips used to accelerate AI computing — remain the standard for much of the infrastructure build-out. And its importance in the AI era is only…
