Arguably considered the only stock that matters for the bull market, NVIDIA (NVDA) is the stock to watch today. After markets close, the graphics chip maker will report first-quarter results.
Comments from executives at Lumentum (LITE) that supply is limited, expect NVIDIA to post blow-out gross margins, revenue growth, and profits. But since NVDA stock traded around 7% below its all-time high after this month’s breakout, the stock potentially priced in the good news.
Investors will want analysts to ask the tough questions about competition. GPU chips matter mostly for AI training. For custom ASICs (application-specific integrated circuits), edge devices, and other AI tasks, Alphabet’s (GOOG) TPU chips might matter more.
Firms like AMD (AMD) are releasing rack-scale servers to compete with NVIDIA.
Furthermore, Amazon (AMZN) is enjoying meaningful success with its chip unit. It posted an annualized revenue of over $20 billion. Growth is in the triple-digit percentage Y/Y.
Google held its 2026 Google I/O conference on Tuesday. At the event, it showcased two chips: the TPU 8i and TPU 8t. The form runs AI software, while the latter is designed for training models.
Your Takeaway
The chances are low that NVIDIA will warn investors that competition is pressuring its margins. Demand far exceeds supply, so data center customers need to buy Amazon, AMD, and Google chips as an alternative. Expect NVIDIA to reaffirm its dominance. The only unknown is how the momentum traders react immediately after the quarterly report.
