The Case For Nvidia Stock Hitting 275 In 2026 Yahoo Finance

Bonisiwe Shabane

-Dec 26, 2025, 11:30 PM

the case for nvidia stock hitting 275 in 2026 yahoo finance

NVIDIA Corporation’s (NVDA) rise has been extraordinary. Once a small graphics chip maker, it now powers data centers, artificial intelligence (AI) systems, and next-gen vehicles, becoming one of Wall Street’s most influential technology leaders. But the AI chip stock’s story has felt like a rocket ride with a few sharp air pockets along the way. Not long ago, NVDA briefly touched the rarefied $5 trillion market-cap club, powered by blistering revenue growth and near-total dominance of the AI chip market. Then came the pullback. The stock cooled as whispers of an AI bubble grew louder, and investors questioned how long this breakneck infrastructure spending could last.

For a company this big, even perfection can feel priced in. But as 2026 approaches, analyst Dan Ives and his team foresee a tech world – and its investors – caught between excitement and anxiety. The AI revolution hints at a once-in-a-generation leap forward, yet the trillions required to fuel it naturally raise questions. Still, that scale of investment also signals a fourth industrial revolution taking shape, with the U.S. firmly setting the pace. The analyst believes this crossroads makes 2026 an inflection year.

With tech stocks projected to rise by over 20%, Nvidia’s dominance, expanding demand drivers, and potential China access underpin a bullish $275 case. With that setup, let’s get into the details. Santa Clara-based Nvidia hardly needs an introduction. Once celebrated as the king of gaming graphics, it quietly reinvented itself as the backbone of modern computing. Its GPUs now power data centers, AI, robotics, and immersive digital worlds. The CUDA software platform locked developers into a powerful ecosystem, turning Nvidia into an industry standard rather than a supplier.

With a market capitalization of nearly $4.4 trillion, Jensen Huang’s company has become the engine of the AI economy. I last covered Nvidia Corporation (NASDAQ:NVDA) on Nov 13 with an article titled "Nvidia Q3 Earnings Preview: Robust Margins Met With A China Problem.” That article served as As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas. We have helped our members not only to beat S&P 500 but also avoid heavy drawdowns despite the extreme volatilities in BOTH the equity AND bond market.

Join for a trial and see if our proven method can help you too. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. The market is underestimating Nvidia's growth potential for 2026.

The company's massive backlog, a potential increase in its margins, and the recent announcement by President Trump regarding its Chinese business should help Nvidia surpass estimates next year. In 2025, Nvidia (NASDAQ: NVDA) became the world's largest company and briefly touched a market cap of $5 trillion. It also delivered yet another year of healthy returns to investors. The share price of the semiconductor giant is up 36% so far this year, and that's impressive considering it endured a few dips along the way. Recent investor sentiment hasn't been positive, with the company's shares dropping 9.7% since the beginning of November. Concerns about circular financing in the artificial intelligence (AI) infrastructure market, an AI bubble, and the sustainability of the inflated levels of AI capital spending are weighing on the stock of late.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The trade war with China was tough on Nvidia Corp. (NASDAQ: NVDA) investors. In April, shares hit a year-to-date low below $87 apiece.

Like its fellow Magnificent 7 members, Nvidia struggled due to economic uncertainties about the effects of tariffs, as well as due to Chinese AI innovations. Bears saw Nvidia stock falling further because of bearish pressure from the broader market. Yet, some investors remain optimistic for a sustained rebound, and lately that seems to have been the case. The stock returned to all-time highs as some tariff fears dissipated and macro data improved, and Nvidia became the first $5 trillion market cap company. The bearish argument that prevailed on Wall Street early this year is not entirely gone, though. While the AI rally may continue, it remains speculative, whereas the reasons for Nvidia stock’s decline in the spring were genuine.

Given challenges such as being effectively locked out of China, Nvidia may still be at a crossroads right now. We do not know for sure where the stock will go next, but with the data on hand, we can speculate. That’s what we are doing here. 1. AI Infrastructure Dominance: Nvidia controls an estimated 80% of the AI accelerator market through its H100/H200 GPUs and CUDA software ecosystem. It is tough for Nvidia customers to switch to another supplier.

This has allowed the company to dominate the industry, with customers returning year after year. As such, it is well-positioned to capture growth from the $400 billion AI chip market projected for 2030. 2. Data Center Expansion: Its data center revenue has surged from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024. Maintaining leadership here requires continuous innovation in GPU architecture and energy efficiency as AI workloads grow exponentially. So far, Nvidia has managed to do that.

3. Margin Preservation: One of the biggest arguments against Nvidia is that it may not be able to hold on to its massive margins as competitors catch up and become more attractive to Nvidia’s customers. This has not happened yet, and Nvidia has maintained its hold on the market quite well. In turn, this has allowed the company to have industry-leading gross margins at 73% in Q4 FY2025.

The Case For Nvidia Stock Hitting 275 In 2026 Yahoo Finance

People Also Search

NVIDIA Corporation’s (NVDA) Rise Has Been Extraordinary. Once A Small

For A Company This Big, Even Perfection Can Feel Priced

With Tech Stocks Projected To Rise By Over 20%, Nvidia’s

With A Market Capitalization Of Nearly $4.4 Trillion, Jensen Huang’s

Join For A Trial And See If Our Proven Method