Catenaa, Thursday, April 30, 2026- Nvidia stock fell over 4.5% on Thursday as investors started weighing the rising competition for the chipmaker in AI.
In its earnings call on Wednesday, Amazon noted its in-house chips business is booming. At the same time, Alphabet’s Google said it plans to sell its custom Tensor Processing Units (TPUs) to select customers who will install the chips in their own data centers.
The bear case driving today’s tape centers on the sustainability of AI infrastructure. The Wall Street Journal reported earlier this week that OpenAI missed key revenue and user growth targets, reigniting bubble concerns just as Meta lifted its 2026 CapEx guidance to a range of $125 billion to $145 billion.
Polymarket activity confirms the bias. One NVIDIA contract assigned a 98% probability to a down day today, while the VIX at 18.81 sits in normal territory, suggesting the action is stock-specific rather than systemic.
Nvidia maintains elite profitability with 71% gross margin and 60% operating margin; thus, the fundamentals remain untouched despite rotation selling.
Moreover, Nvidia valuation has actually become more attractive. The Nvidia P/E ratio has compressed from 46x in Q3 FY2026 to 38x in Q4 FY2026, meaning earnings are outrunning the stock. That’s the opposite of bubble math.
The company’s Q4 FY2026 results back the case. Nvidia posted record revenue of $68.13 billion, up 73% year over year (YoY), with quarterly free cash flow of $34.9 billion and Networking revenue surging 263%.
Meanwhile, a crackdown on chip smuggling in China has nearly doubled prices for Nvidia’s B300 servers to $1 million each, according to a Reuters report. Nvidia’s most powerful server is restricted in China.
Amazon’s and Google’s in-house chips are different than the ones Nvidia offers, and the AI chip heavy has largely dismissed any fears that other tech giants will erode its lead in the space, saying that its chips offer greater flexibility for AI developers.
Amazon and Alphabet are also big buyers of Nvidia’s AI infrastructure hardware.
Thursday’s price action created a mixed picture for semiconductor stocks. Qualcomm surged 9% in early trading as it moves further into the data center space. Memory and storage players Sandisk, Western Digital, and Seagate also rose as Microsoft and Meta on Wednesday noted rising costs for those AI infrastructure components.
