By Daniel Sparks
Publication Date: 2026-05-14 02:11:00
Nvidia (NVDA +2.33%) is set to report its fiscal first-quarter 2027 results after the market closes on May 20. Heading into the report, shares sit near record highs, up about 21% year to date as of this writing. The AI chipmaker has also guided for fiscal first-quarter revenue of about $78 billion — a forecast that implies approximately 75% year-over-year growth.
So why am I not buying ahead of what will almost certainly be another amazing quarter?
The issue is that the very customers funding this surge are increasingly building or commissioning their own artificial intelligence (AI) chip alternatives, while the stock’s valuation already prices in years of uninterrupted dominance. And with a price-to-earnings ratio of about 46 as of this writing, even small shifts in the demand picture could weigh on shares.
Meanwhile, there is one AI chip story I think looks far more attractive at today’s prices.
Image source: Nvidia.
Nvidia’s momentum looks real — but only goes so far
There is no question Nvidia is still firing on all cylinders. The company’s fiscal fourth-quarter revenue (reported in late February) hit a record $68.1 billion, up 73% year over year and 20% sequentially. The pace of growth even accelerated — up from 62% year-over-year growth in fiscal Q3. And data center revenue alone came in at $62.3 billion — up 75% from a year earlier, with networking revenue of $11 billion soaring more than 3.5 times.
Today’s Change
(2.33%) $5.14
Current Price
$225.92