By Jennifer Saibil
Publication Date: 2026-03-12 12:12:00
Nvidia (NVDA 1.03%) delivered a spectacular fiscal 2026 fourth-quarter earnings report, trouncing Wall Street’s expectations and demonstrating incredible growth. However, the stock fell after the report, and it’s slightly down for the year.
Here’s what I think is going on.
The near term: Competition and an AI bubble
There’s no question that Nvidia’s latest quarter was a stellar continuation of its phenomenal growth story. Although it has been a growth stock for decades, the company became a part of popular culture with the advent of generative artificial intelligence (AI) in 2022, as it became clear that its powerful graphics processing units (GPUs) were the best available chips to power the new software. And Nvidia has continued to drive innovation and development in the space.
Image source: Nvidia.
However, as it always goes in the technology realm, nothing stays stagnant, and competition is emerging. Nvidia’s processors are not cheap, and other chipmakers are developing alternatives that can handle the data inference and training process, often for a lot less money. Amazon, for example, has its own Tranium AI accelerators and Graviton CPUs, and the company has 1.4 million Tranium2 chips fully subscribed. Alphabet‘s newest Tensor Processing Units are 10 times faster than the previous iteration while being almost twice as efficient. Broadcom‘s custom application-specific integrated circuits (ASICs) are designed in collaboration with its hyperscaler clients to handle…
