Three AI Stocks Outperform Nvidia This Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- CoreWeave's Strong Performance: CoreWeave's stock has surged over 65% in 2026, primarily since April, indicating robust demand in AI training acceleration, with Nvidia's stake reflecting confidence in its future performance.
- Nebius's Rapid Growth: Nebius's stock has risen over 80% in 2026, with projected revenue growth of 523% this year, highlighting strong market demand for its AI-first cloud computing infrastructure, likely to continue outperforming Nvidia.
- Applied Digital's Successful Model: Applied Digital's stock is up 37% this year, with a 139% revenue increase in its latest quarter due to its data center leasing model, positioning it for further market share growth if it maintains this momentum.
- Risks and Opportunities: While all three companies are experiencing rapid growth, they are not yet profitable and are taking on debt to expand, necessitating careful risk assessment by investors, whereas Nvidia remains profitable despite recent underperformance.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 211.500
Low
200.00
Averages
264.97
High
352.00
Current: 211.500
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dominance in GPU Market: Nvidia's GPUs remain the preferred parallel processing units for training and running AI models, and despite the rise of alternatives like Google's TPUs, Nvidia's flexibility keeps it favored among data center operators and AI software companies.
- Capital Expenditure Trends: Alphabet's projection of a significant increase in capital expenditures for 2027 reflects strong confidence in capturing AI opportunities, which will further boost demand for Nvidia's products and support its stock performance over the next three years.
- Long-term Investment Value: While Nvidia has the potential to outperform Amazon and Alphabet, both companies remain solid investments in the cloud computing sector, and once the capital expenditure cycle concludes, they could also deliver impressive returns over the next decade.
See More
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- Surge in Capital Expenditures: Wall Street analysts now forecast that capital expenditures among the top five hyperscalers will increase nearly 80% to $805 billion in 2026, exceeding previous estimates, which will directly boost demand for Nvidia's GPUs.
- Future Valuation Potential: Brad Gerstner, founder of Altimeter Capital, believes Nvidia is severely undervalued and could reach a market cap of $10 trillion, implying about 100% upside, reflecting the market's underestimation of AI infrastructure demand.
- Rapid Product Iteration: Nvidia plans to shorten its GPU update cycle to 12-18 months, compared to the typical 3-5 years for custom chips, a strategy that will help maintain its technological edge and further solidify its market position in the coming years.
See More
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- Surge in Capital Expenditure: Morgan Stanley forecasts that capital expenditures among the top five hyperscalers will increase nearly 80% to $805 billion by 2026, which will further drive demand for Nvidia's GPUs and solidify its status as the industry standard.
- Optimistic Future Valuation: Altimeter Capital's CEO Brad Gerstner believes Nvidia will become the first $10 trillion company, while I/O Fund's Beth Kindig predicts a market cap of $20 trillion by 2030, indicating significant upside potential for shareholders.
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See More
