Nvidia faces valuation concerns before earnings as analysts highlight Amazon’s AI chip growth

Nvidia (NVDA) is set to report fiscal 2027 first-quarter results after the U.S. market close on May 20, 2026, with investors expecting another strong quarter. However, some analysts warn the stock’s roughly 46 times earnings valuation leaves limited room for margin pressure as major cloud and AI customers develop alternatives. Nvidia reported record fiscal fourth-quarter revenue of $68.1 billion in February 2026, up 73% from a year earlier. Data center revenue rose 75% to $62.3 billion, while networking revenue more than tripled to $11 billion. The company forecast current-quarter revenue of $78 billion, implying about 75% annual growth. The Motley Fool said Amazon (AMZN) may offer a more discounted AI chip opportunity. Amazon’s Trainium, Graviton and Nitro chip lines have surpassed $20 billion in annualized revenue, with triple-digit growth. CEO Andy Jassy estimated annualized chip revenue could reach $50 billion if current capacity were sold to AWS and third parties. Amazon trades at about 32 times earnings, below Nvidia’s multiple, though its 2026 capital spending could reach $200 billion.