Nvidia reports earnings Wednesday with revenue near $92B and 75% margins. Rivals including Amazon and Cerebras are closing in on the $1 trillion AI chip market.
Nvidia Corp. reports earnings Wednesday that analysts estimate will show revenue nearly doubled last quarter to $92 billion. The Santa Clara, California-based company's profit margins have expanded to roughly 75%, about 20 percentage points wider than its nearest rivals. That flood of cash is making the turf more attractive by the day.
Amazon.com Inc. CEO Andy Jassy told analysts in July that if his company's semiconductor operation were a standalone business, it would generate annual revenue above $25 billion, growing at a triple-digit rate. Amazon remains one of Nvidia's top customers. NVDA stock page currently shows an Alpha Score of 70 out of 100, labeled Moderate.
Other cloud-computing providers are also developing in-house silicon. Google forged a deal with Marvell Technology Inc. to design its tensor processing units. Meta Platforms Inc. has signed agreements across the AI components industry, even with Qualcomm Inc. Anthropic PBC hired a Google silicon veteran while plotting its own chip push. OpenAI is developing a processor called Jalapeno with Broadcom Inc.
The total market for AI accelerators is on track to cross $1 trillion in revenue, according to analysts. Nvidia still holds roughly 90% of that market. The shift from training AI models to inference, when models respond to real-world inputs, is creating openings for a wider range of chips.
"Nvidia has a strong ecosystem," said Hendi Susanto, a portfolio manager and analyst at Gabelli. Shifts like Amazon and Google selling their own chips came "on us relatively fast," he said.
"Inference is not a one-size-fits-all, so brute-forcing inference with a single chip is not going to work," said Sid Sheth, CEO of startup d-Matrix.
AMD, the second-largest GPU maker, saw its data center revenue more than double last quarter to $6.7 billion. CEO Lisa Su expects the total market for AI accelerators to reach $1.4 trillion by 2030. AMD stock page shows an Alpha Score of 45 out of 100, labeled Mixed.
Broadcom, once known for Wi-Fi chips, now partners with Google, Meta and others on custom silicon. It expects to sell $56 billion of those products this year. AI-related revenue at Broadcom's design division is more than doubling, according to Bloomberg Intelligence. Google will release two versions of its TPUs simultaneously this year for the first time, targeting one at fast inference.
Cerebras Systems Inc. held the semiconductor industry's largest-ever IPO in May. CEO Andrew Feldman said his chips provide answers to AI prompts faster than Nvidia's. "This is a market that cares desperately about speed," he said. OpenAI and Amazon have both forged deals with Cerebras.
Startups including Positron, Fractile and Etched are attracting rapidly growing valuations. "The markets prefer a little bit of an oligopoly structure rather than a monopoly," said Mitesh Agrawal, CEO of Positron. He added that no one is a competitor of Nvidia until they can claim at least a tenth of its revenue.
Hyperscalers are adding data centers faster than chip supply can keep up. Broadcom's CEO Hock Tan said the OpenAI Jalapeno chip will be refreshed in 2028 and then annually. OpenAI may let other businesses use its chips, semiconductor chief Richard Ho said in a June interview. Meta's spending dedicated to Nvidia actually went up in recent months.
Nvidia has moved to defend its position. It agreed to pay a reported $20 billion for technology and personnel from Groq, a startup focused on inference. The company is overhauling its designs every year and expanding into data center cooling, networking and storage. Taiwan Semiconductor Manufacturing Co. produces the most advanced chips, and Nvidia has a long-term relationship with the foundry. "With supply commitments above $100 billion, the company is effectively locking in critical AI-infrastructure capacity multiple quarters in advance," said Kunjan Sobhani, an analyst at Bloomberg Intelligence.
On Wall Street, Nvidia's stock has climbed 15% in 2026. The Philadelphia Stock Exchange Semiconductor Index has gained 66% over the same period. Intel and AMD have more than doubled. Micron Technology Inc. is up more than threefold.
Even Amazon, the proud chip juggernaut, remains deeply reliant on Nvidia. For all its in-house efforts, the e-commerce giant continues to send about a quarter of its capital expenditures to the company. AMZN stock page shows an Alpha Score of 53 out of 100, labeled Mixed.
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