Investors Cautious on Tech Stocks in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Tech Sector Weakness: As of February 4, 2026, large-cap tech stocks have declined approximately 3%, making them the worst-performing sector, reflecting investor concerns over high valuations and ineffective AI spending, which may increase the risk of a market correction.
- Microsoft's Financials: Microsoft reported a 66% year-over-year increase in capital expenditures in Q2 2026, although growth for its AI cloud engine, Azure, has slowed; however, its remaining performance obligation surged 110% to $625 billion, enhancing its appeal for long-term investors with a current P/E ratio of 26, below S&P 500 and Nasdaq-100 averages.
- Oracle's Upside Potential: Oracle's stock has even greater upside potential, with analysts projecting a price target of $272, indicating an 88% upside over the next 12 months; despite concerns over its AI spending, its $523 billion backlog has increased by 438% year-over-year, demonstrating robust market demand.
- Investor Risk Considerations: While Microsoft is rated a buy by 95% of analysts, Oracle is viewed as a higher-risk investment due to its debt and reliance on OpenAI, necessitating careful evaluation of its future profitability and market performance.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
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.
Nvidia vs. Oracle: Compelling Investment Stories
- Nvidia's Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the largest company globally, which highlights its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt exceeding $100 billion, raising concerns about its financial health among investors.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, including a $2.7 billion pre-tax gain, showcasing its strong growth potential in the cloud computing sector.
- Future Growth Expectations: Despite facing debt pressures, Oracle's forward price-to-earnings ratio stands at just 19.8, indicating that its stock is at a two-year low, and analysts expect significant revenue growth in the future, potentially providing a good buying opportunity for investors.
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- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
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- Rising Market Demand: GF Securities analyst Jeff Pu noted that Nvidia's launch of the Quantum-X optical switch at the 2025 GTC will drive demand for continuous-wave lasers from Lumentum, presenting significant market opportunities for the company.
- Product Release Timeline: Nvidia plans to gradually introduce its scale-out optical switches from 2025 to 2027, with a new generation featuring 115.2T expected in 2026, further propelling Lumentum's business growth.
- Long-Term Structural Opportunity: Lumentum highlighted in its recent earnings call that optical scale-up represents a long-term structural opportunity, expected to materialize by late 2027, indicating the company's confidence in future market prospects.
- Technological Transition Trend: As Nvidia considers introducing CPO/NPO technologies in the second half of 2027, Lumentum stands to benefit from the transition in optical interconnects, although the readiness for NPO versus CPO production remains uncertain.
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- Strong Market Demand: Nvidia's (NVDA) stock has surged 47% over the past year, driven by ongoing investments in chips and data centers, particularly as Google's parent company Alphabet announced a minimum of $175 billion in capital expenditures this year to support AI demand, indicating robust market interest in artificial intelligence.
- Diversified Market Opportunities: Nvidia is not solely reliant on selling powerful chips to AI hyperscalers; it is also partnering with Thermo Fisher Scientific to build an AI lab computing system powered by its DGX Spark supercomputer, targeting the life sciences industry, which spends approximately $300 billion annually on research and development, thereby expanding its market potential.
- Systems Solutions Provider: Nvidia distinguishes itself as a systems and solutions provider rather than just a chip supplier, which enhances its competitive edge against custom chip designers like Broadcom, making it an indispensable partner for enterprises seeking to solve complex problems and solidifying its market position.
- Attractive Investment Value: Nvidia's stock appears attractively valued, trading at 24 times this year's consensus earnings estimate, with Wall Street analysts projecting a 57% increase in earnings this year, suggesting that the recent dip could present an excellent buying opportunity before the stock rises to new highs later this year.
See More
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- Sapience AI Investment: Society Pass announced an $8.8 million investment in Sapience AI at the end of January, leveraging Nvidia's Blackwell chips to develop smaller data centers, which is expected to drive growth in a faster and more cost-effective manner, enhancing its competitive edge in the Southeast Asian market.
- NusaTrip Partnership Expansion: NusaTrip has formed new partnerships with Indonesian OTA Bookcabin and Thai OTA Gother to integrate flight and hotel supplies, with expectations for future expansion of products and ancillary services, thereby increasing market share.
- Gorilla eSIM Reinvestment: After selling Gorilla in 2025, Society Pass reacquired an interest in the company through a $1.9 million investment, with management anticipating that the shift to a B2B model will lead to an IPO within the next year, potentially benefiting shareholders.
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- Surge in Capital Expenditure: Alphabet, Google's parent company, announced it will invest at least $175 billion in capital expenditures this year to support AI demand, indicating sustained enthusiasm for AI investments that further boosts Nvidia's market demand.
- Market Potential Expansion: Nvidia is not solely reliant on selling powerful chips to AI hyperscalers like Google; it is partnering with Thermo Fisher Scientific to build AI lab computing systems, which is expected to tap into the $300 billion market opportunity in the life sciences sector.
- Optimistic Earnings Outlook: Analysts project Nvidia's earnings to grow by 57% this year, with the stock currently trading at 24 times this year's consensus earnings estimate, making it an attractive investment option for investors looking for value.
- Strengthened Industry Position: Nvidia is not just a chip supplier but a systems and solutions provider, solidifying its indispensable role in the AI sector by solving complex problems, thereby differentiating itself from custom chip designers like Broadcom.
See More
Nvidia vs. Oracle: Compelling Investment Stories
- Nvidia's Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the largest company globally, which highlights its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt exceeding $100 billion, raising concerns about its financial health among investors.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, including a $2.7 billion pre-tax gain, showcasing its strong growth potential in the cloud computing sector.
- Future Growth Expectations: Despite facing debt pressures, Oracle's forward price-to-earnings ratio stands at just 19.8, indicating that its stock is at a two-year low, and analysts expect significant revenue growth in the future, potentially providing a good buying opportunity for investors.
See More
Montage Technology Shares Surge 60% on Hong Kong Debut, Raising $902 Million
- Strong Debut Performance: Montage Technology's shares surged approximately 60% on their Hong Kong debut, climbing from the offering price of HK$106.89 to HK$171, indicating robust market demand for its high-performance semiconductors and reinforcing its position in the cloud computing and AI sectors.
- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
See More
Lumentum to Benefit as Nvidia Accelerates Optical Technology
- Rising Market Demand: GF Securities analyst Jeff Pu noted that Nvidia's launch of the Quantum-X optical switch at the 2025 GTC will drive demand for continuous-wave lasers from Lumentum, presenting significant market opportunities for the company.
- Product Release Timeline: Nvidia plans to gradually introduce its scale-out optical switches from 2025 to 2027, with a new generation featuring 115.2T expected in 2026, further propelling Lumentum's business growth.
- Long-Term Structural Opportunity: Lumentum highlighted in its recent earnings call that optical scale-up represents a long-term structural opportunity, expected to materialize by late 2027, indicating the company's confidence in future market prospects.
- Technological Transition Trend: As Nvidia considers introducing CPO/NPO technologies in the second half of 2027, Lumentum stands to benefit from the transition in optical interconnects, although the readiness for NPO versus CPO production remains uncertain.
See More
Nvidia Shares Up 47% with Promising Growth Ahead
- Strong Market Demand: Nvidia's (NVDA) stock has surged 47% over the past year, driven by ongoing investments in chips and data centers, particularly as Google's parent company Alphabet announced a minimum of $175 billion in capital expenditures this year to support AI demand, indicating robust market interest in artificial intelligence.
- Diversified Market Opportunities: Nvidia is not solely reliant on selling powerful chips to AI hyperscalers; it is also partnering with Thermo Fisher Scientific to build an AI lab computing system powered by its DGX Spark supercomputer, targeting the life sciences industry, which spends approximately $300 billion annually on research and development, thereby expanding its market potential.
- Systems Solutions Provider: Nvidia distinguishes itself as a systems and solutions provider rather than just a chip supplier, which enhances its competitive edge against custom chip designers like Broadcom, making it an indispensable partner for enterprises seeking to solve complex problems and solidifying its market position.
- Attractive Investment Value: Nvidia's stock appears attractively valued, trading at 24 times this year's consensus earnings estimate, with Wall Street analysts projecting a 57% increase in earnings this year, suggesting that the recent dip could present an excellent buying opportunity before the stock rises to new highs later this year.
See More
Society Pass Invests in Sapience AI and Expands NusaTrip Partnerships
- Sapience AI Investment: Society Pass announced an $8.8 million investment in Sapience AI at the end of January, leveraging Nvidia's Blackwell chips to develop smaller data centers, which is expected to drive growth in a faster and more cost-effective manner, enhancing its competitive edge in the Southeast Asian market.
- NusaTrip Partnership Expansion: NusaTrip has formed new partnerships with Indonesian OTA Bookcabin and Thai OTA Gother to integrate flight and hotel supplies, with expectations for future expansion of products and ancillary services, thereby increasing market share.
- Gorilla eSIM Reinvestment: After selling Gorilla in 2025, Society Pass reacquired an interest in the company through a $1.9 million investment, with management anticipating that the shift to a B2B model will lead to an IPO within the next year, potentially benefiting shareholders.
- Financing and Target Price Adjustment: Society Pass funded the above investments through a $3 million offering with no warrant coverage, which is expected to boost shareholder confidence, while Greenridge's target price adjustment reflects an optimistic outlook on future growth.
See More
Nvidia Expands Competitive Lead in AI Market
- Surge in Capital Expenditure: Alphabet, Google's parent company, announced it will invest at least $175 billion in capital expenditures this year to support AI demand, indicating sustained enthusiasm for AI investments that further boosts Nvidia's market demand.
- Market Potential Expansion: Nvidia is not solely reliant on selling powerful chips to AI hyperscalers like Google; it is partnering with Thermo Fisher Scientific to build AI lab computing systems, which is expected to tap into the $300 billion market opportunity in the life sciences sector.
- Optimistic Earnings Outlook: Analysts project Nvidia's earnings to grow by 57% this year, with the stock currently trading at 24 times this year's consensus earnings estimate, making it an attractive investment option for investors looking for value.
- Strengthened Industry Position: Nvidia is not just a chip supplier but a systems and solutions provider, solidifying its indispensable role in the AI sector by solving complex problems, thereby differentiating itself from custom chip designers like Broadcom.
See More
