University of Kwazulu-Natal

Here S What Nvidia Investors Can Look Forward To In 2026

Bonisiwe Shabane
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here s what nvidia investors can look forward to in 2026

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More. Nvidia stock has delivered solid returns for investors in 2025. But it could head even higher in 2026, driven by at least one key catalyst. You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.

Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More. Currently up 34%, Nvidia (NASDAQ:NVDA) stock is on course to deliver market-beating results again this year, powered higher by very strong earnings growth. Yet it’s also been a strange year, with rising concerns about an AI bubble and the price is down 12.5% since October. Written by Adria Cimino for The Motley Fool-> Nvidia has seen explosive growth thanks to its dominance in AI chips.

But investors have worried about how long this growth may continue. Nvidia (NASDAQ: NVDA) has been around for more than 30 years, but it's in recent years that this tech giant has seen earnings and its stock price truly take off. In its earlier days, the company's biggest business was serving chips to the video gaming market, and this progressively powered revenue higher. About a decade ago, though, Nvidia saw a new and potentially massive opportunity -- artificial intelligence (AI) -- and decided to dive in, designing its chips specifically to suit this technology. This decision proved to be game-changing for Nvidia. It resulted in revenue and profit soaring in the triple digits to record levels -- and Nvidia securing the leading position in a market set to reach into the trillions of dollars just a...

Still, investors have worried about various headwinds that could interrupt Nvidia's incredible story -- from any slowdown in AI spending to increased pressure from rival chip designers. Nvidia (NASDAQ: NVDA) has seen its shares increase by 32% in 2025, outperforming the S&P 500’s 15% return. The company reported third-quarter revenue of $57 billion, a 62% year-over-year increase, driven by the demand for AI hardware. Despite a market cap of $4.3 trillion and a forward price-to-earnings ratio of 23, which is lower than the Nasdaq 100 average of 26, concerns arise regarding the sustainability of this growth into 2026,... Key clients like OpenAI and Amazon are investing in Application-Specific Integrated Circuits (ASICs), which could challenge Nvidia’s high-margin GPU sales. As the generative AI sector matures, underlying uncertainties regarding customer losses and spending on Nvidia’s products may impact investor confidence moving forward.

Antonio Bordunovi/iStock Editorial via Getty Images Wall Street analysts believe that Nvidia (NVDA) is significantly undervalued, and I totally agree with it. The company's valuation multiples are poised to contract dramatically over the next few years as it keeps converting Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).

I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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