Is Nvidia's Valuation Justified as New Competitors Close the AI Gap?

• Nvidia has a ascendant stock of the information halfway spot business.

• Alphabet and Amazon are 2 of the large companies that are taking purpose astatine Nvidia's dominance.

• CEO Jensen Huang says request for Nvidia chips remains strong.

• 10 stocks we similar amended than Nvidia ›

Nvidia (NASDAQ: NVDA) has made past successful caller years by making the go-to merchandise for grooming and moving high-performance artificial quality (AI) applications. Its graphics processing units (GPUs) helped marque Nvidia the biggest publically traded institution successful the world, concisely achieving a marketplace capitalization of much than $5 trillion.

Becoming No. 1 was large for the institution and its shareholders. But it whitethorn beryllium tougher successful 2026 for Nvidia to support that vantage arsenic its competitors -- immoderate of whom are the biggest and astir palmy companies successful the satellite -- rotation retired products to chopped into Nvidia's marketplace share.

Advanced Micro Devices has agelong been 1 of Nvidia's apical competitors, but present there's renewed contention from immoderate of Nvidia's biggest customers, specified arsenic Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN), that are looking to gain gross from selling their ain customized semiconductors alternatively than pumping billions into Nvidia's coffers.

Faced with expanding competition, is Nvidia banal inactive worthy buying astatine a premium price?

AI is simply a generational breakthrough that's changing not lone however companies run but besides however radical invest. Top AI companies Nvidia, Alphabet, Microsoft, Apple, and Broadcom are among the biggest companies successful the satellite close now, bringing successful hundreds of billions of dollars a year. Their products are successful precocious request arsenic businesses absorption connected utilizing AI to modernize their operations, negociate proviso concatenation changes and inventory, and supply public-facing tools that differentiate them from competitors.

Nvidia has been astatine the halfway of this due to the fact that it provides the lion's stock of GPUs needed to bid and tally high-level AI programs. It's estimated to person arsenic overmuch arsenic 90% of the information halfway GPU market. That's fixed Nvidia unthinkable maturation successful the past 3 years arsenic its banal terms is up much than 970%, and its gross jumped by astir 600%.

Nvidia's net reports proceed to stroke expectations retired of the water. Despite monolithic comparable numbers connected a year-over-year basis, Nvidia consistently outperforms. Revenue successful the 3rd 4th of fiscal 2026 (ended Oct. 26, 2025) was up 62% from a twelvemonth ago, hitting $57 billion. Most of that wealth came from information halfway sales, which were $51.2 cardinal and up 66% from a twelvemonth ago.