Nvidia continues to dominate the global AI chip market, controlling an estimated 85% share of GPU sales, but growing competition from rivals such as AMD and Qualcomm is raising questions about whether the stock remains a strong buy heading into 2026.
The company has been one of the biggest beneficiaries of the artificial intelligence boom, with its graphics processing units becoming the industry standard for training and running advanced AI models. Major AI developers, including OpenAI and Microsoft, rely heavily on Nvidia hardware, reinforcing its position as the preferred supplier across the AI ecosystem.
That dominance, however, has attracted competition. Advanced Micro Devices has steadily expanded its footprint, reaching roughly 7% market share, while Qualcomm has introduced new AI-focused chips targeting lower-end and edge computing use cases. Although these challengers are making progress, analysts note that their growth has been relatively slow and remains far behind Nvidia’s scale.
Financially, Nvidia remains exceptionally strong. In its most recent quarter, the company posted $57 billion in revenue, representing a 62% year-over-year increase. Net income and earnings per share also surged by more than 60%, highlighting Nvidia’s ability to translate demand into profitability. With gross margins near 70% and net margins above 50%, Nvidia stands among the most profitable large-cap companies in the market.
The company’s balance sheet further strengthens its competitive position. Nvidia holds over $60 billion in cash, far exceeding its total debt, giving it ample flexibility to invest in research, expand capacity, or withstand competitive pressures.
While rivals continue to develop alternative AI chips, unseating Nvidia would require not only comparable hardware but also an ecosystem that matches its software, developer tools, and industry adoption. For now, Nvidia’s leadership appears secure.
As 2026 approaches, competition is intensifying, but Nvidia’s scale, financial strength, and deep integration into the AI economy suggest it remains a dominant force in the sector.