2026 Data Center Construction Boom Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Surge in AI Spending: Spending on artificial intelligence is projected to reach new heights by 2026, driving significant growth for Nvidia, Broadcom, and Taiwan Semiconductor, making them top picks for investors looking to capitalize on this trend.
- Capital Expenditure Forecast: Amazon, Alphabet, and Meta are expected to collectively invest over $500 billion in 2026 for data center construction and equipment purchases, with Nvidia and Broadcom benefiting significantly as chips account for nearly half of data center construction costs.
- Significant Growth Potential: Nvidia forecasts that global data center capital expenditures will reach $3 trillion to $4 trillion annually by 2030, indicating immense future demand for infrastructure, which could drive stock prices of related companies higher.
- Market Valuation Lag: Despite Nvidia, Broadcom, and Taiwan Semiconductor being projected to achieve impressive revenue growth, the market has not assigned them significant premiums, with Nvidia expected to grow 64% in fiscal 2027, while Broadcom and Taiwan Semiconductor are projected to grow 51% and 34%, respectively.
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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: 182.810
Low
200.00
Averages
264.97
High
352.00
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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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- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
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- Rapid User Growth: With revenue growth exceeding 100%, Render now boasts over 4.5 million developers using its tools, significantly enhancing its position in the highly competitive cloud computing market.
- Strategic Technology Shift: Render is testing the use of its own servers to reduce costs and improve service efficiency, a strategic pivot that could provide customers with more competitive pricing while enhancing the company's control over its infrastructure.
- Intensifying Market Competition: As OpenAI's ChatGPT drives increased demand for cloud computing, Render emerges as a beneficiary, particularly as companies seek mature alternatives to Heroku, underscoring its importance and potential in the industry.
See More
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- Strong Sales Expectations: Citi analysts project Nvidia's January quarter sales to reach $67 billion, exceeding the Street's expectation of $65.6 billion, indicating robust performance in the chip market and reinforcing its market leadership.
- Optimistic Future Guidance: Analysts expect Nvidia's April quarter guidance to be $73 billion, surpassing the market's $71.6 billion forecast, reflecting the company's confidence in future growth, which may attract more investor interest.
- Accelerated Product Launch: With the launch of the B300, Nvidia is expected to achieve a 34% quarter-over-quarter sales acceleration in the second half of 2026, compared to 27% in the first half of 2026, showcasing strong momentum in new product releases.
- Market Leadership: Analysts believe Nvidia will continue to lead in AI inference workloads, particularly in a more diversified inference market, which is expected to create additional growth opportunities and market share for the company.
See More
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- AI Market Growth: The AI market is expected to continue its growth trajectory in 2026, driving up demand for related technologies, thereby increasing the importance of cybersecurity, which necessitates greater investment from businesses to counter potential threats.
- Cybersecurity Market Potential: As AI technologies become more widespread, the cybersecurity market may experience even greater growth opportunities, with companies significantly increasing their spending on data and system security, thus enhancing the overall market size.
- Stock Market Volatility Analysis: The current stock market is experiencing turbulence, prompting investors to look for potential buying opportunities, particularly in cybersecurity firms like CrowdStrike, which is anticipated to rebound in price during market corrections.
- Investment Strategy Recommendations: The video outlines specific buy price targets that will provide investors with clear entry points, especially during market downturns, making it crucial to seize opportunities in high-quality cybersecurity stocks for long-term gains.
See More
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- New Portfolio Adjustments: In Q4 2025, Duan Yongping added three new stocks, with CoreWeave Inc being the largest at 299,900 shares valued at $21.48 million, representing 0.12% of his portfolio, indicating a focus on emerging tech companies.
- Significant Increase in NVIDIA: Yongping increased his stake in NVIDIA by 6,639,300 shares, bringing his total to 7,237,100 shares, a remarkable 1,110.62% increase, which not only raised its weight in the portfolio by 7.08% but also reflects confidence in the semiconductor industry's strong outlook.
- Reduction in Apple Holdings: He reduced his Apple shares by 2,470,600, resulting in a 7.09% decrease in holdings and a -4.29% impact on the portfolio, indicating dissatisfaction with the stock's recent performance, which averaged $268.66 during the quarter.
- Portfolio Overview: As of Q4 2025, Yongping's portfolio included 14 stocks, with Apple making up 50.3% and Berkshire Hathaway 20.63%, showcasing a highly concentrated investment strategy in technology and financial services sectors.
See More
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- Norwegian Cruise Investment: Activist investor Elliott Investment Management has acquired over a 10% stake in Norwegian Cruise Line, aiming to turnaround the underperforming operator, which has led to a more than 6% increase in share price, reflecting market confidence in its restructuring potential.
- Energy Stock Upgrade: Melius upgraded Chevron from hold to buy, raising its price target from $162 to $205, as analysts believe the global energy company is well-positioned for growth, particularly due to developments in Venezuela.
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