Nvidia posts fiscal 2026 revenue up 65% with $96.6B cash flow; Nio shifts away from its GPUs
Nvidia reported fiscal 2026 revenue of $215.9 billion, a 65% increase year-over-year, and generated $96.6 billion in free cash flow, driven by surging data center GPU demand. Meanwhile, EV maker Nio announced plans to replace Nvidia chips with proprietary processors, risking reduced automotive GPU sales.
1. Fiscal 2026 Results
Nvidia achieved $215.9 billion in fiscal 2026 revenue, up 65% year-over-year, and recorded $96.6 billion in free cash flow. This performance was underpinned by strong data center GPU sales and accelerating enterprise AI deployment.
2. Nio's In-House Chip Strategy
Chinese EV maker Nio plans to replace Nvidia GPUs in its next-generation vehicles with in-house designed chips to lower production costs. If adopted broadly, this strategy could dent Nvidia's automotive GPU segment growth.
3. High Valuation and Industry Risks
Nvidia shares trade at 41x current earnings and 24x forward earnings, reflecting lofty growth expectations. These multiples expose the company to semiconductor cycle volatility and rising competition from custom silicon providers.