Overview
- Nvidia reported a record quarter with roughly $81.6 billion in revenue and an EPS beat while retaining about three‑quarters to four‑fifths of AI accelerator revenue share.
- Despite those results, the stock has cooled in 2026 and now trades at valuation levels not seen since 2019, with trailing and forward P/E ratios well below earlier AI run‑up peaks.
- Wall Street concern centers on the scale and durability of hyperscaler AI spending, with combined 2026 capex estimates in the hundreds of billions and growing doubts about whether that spending will produce acceptable returns.
- Competition and customer moves are changing the market: AMD and Intel have gained share this year and major cloud customers are building custom AI chips that could reduce future demand for Nvidia hardware.
- Nvidia has pushed back with an $80 billion buyback, a larger dividend and ecosystem deals while investors wait for near‑term catalysts such as Microsoft and Amazon earnings and Nvidia's next quarterly report.