Nvidia (NVDA) Enters Growth Phase with Blackwell Chips and New Product Line
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 17 2026
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Should l Buy NVDA?
Source: Fool
- Growth Potential Analysis: Nvidia is poised to enter a robust growth phase driven by the launch of Blackwell chips, which is expected to further expand its market share in the AI sector, attracting more long-term investor interest.
- Margin Improvement: The introduction of new product lines is anticipated to significantly enhance Nvidia's profit margins, strengthening its profitability in the highly competitive semiconductor market and generating higher returns for shareholders.
- Positive Market Response: Despite facing certain risks, analysts remain optimistic about Nvidia's long-term outlook, believing that its leadership in AI will continue to inspire investor confidence and drive stock price increases.
- Investor Confidence Boost: Based on growth expectations, Nvidia's stock price showed a strong upward trend at market prices on January 8, 2026, reflecting high market recognition of its new technologies and products.
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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: 187.980
Low
200.00
Averages
264.97
High
352.00
Current: 187.980
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.
- Earnings Potential Analysis: Oppenheimer anticipates Nvidia's Q4 sales could see a typical upside of $2B to $3B, primarily driven by the GB300 Ultra, indicating strong performance in the AI sector.
- Growing Market Demand: Expected capital expenditures from cloud service providers are projected to reach $650B in 2026, up from over $400B in 2025, reflecting sustained demand for Nvidia's products.
- New Product Outlook: The average selling price for Vera Rubin is expected to be 40% to 50% higher than that of GB300, potentially adding around $8B in revenue for Nvidia, further solidifying its market leadership.
- Market Size Expansion: With China now included, Nvidia's total addressable market is estimated to be around $4T, showcasing its dominant position in the global AI platform and future growth potential.
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- Weak Market Performance: Since August 2025, Nvidia's stock has only risen by 5%, significantly lagging behind the S&P 500's 10% gain, indicating market caution regarding its future growth despite optimistic prospects in the AI sector.
- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
- China Market Resumption: Nvidia has regained the ability to export GPUs to China, re-entering the world's second-largest AI market; although the stock has not significantly reacted to this positive development, it provides new momentum for future growth.
- Attractive Valuation: With a forward P/E ratio of less than 24, Nvidia's stock appears cheap compared to the S&P 500's 21.9, suggesting that investors should consider buying during this pullback, especially with upcoming spending increases on the horizon.
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- Market Potential: Analysts expect the AI market to reach trillions of dollars in the coming years, indicating that this trend is likely not just a short-term phenomenon but could provide long-term gains for investors.
- CoreWeave's Strong Performance: Since its IPO last March, CoreWeave's stock has surged over 120%, with a market cap of $51 billion, reflecting robust market demand and investor confidence.
- Flexible Business Model: By renting out Nvidia's top GPUs, CoreWeave offers customers on-demand services that meet their needs for speed and flexibility while reducing infrastructure costs.
- Infrastructure Expansion Challenge: Despite strong customer demand, CoreWeave's biggest challenge is building out infrastructure to meet this demand, which involves taking on debt; while this poses risks for cautious investors, it presents opportunities for aggressive ones.
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- Nvidia Stock Sale: Philippe Laffont sold 667,400 shares of Nvidia in Q4, despite the company holding a 90% market share in AI and projected earnings growth of 38% annually over the next three years, indicating a cautious approach to portfolio diversification.
- Netflix Stock Purchase: Laffont acquired 10.2 million shares of Netflix in Q4, which completed a 10-for-1 stock split, suggesting confidence in a potential 25% price increase over the next 12 months, particularly given the popularity of its original content.
- Market Share and Growth Potential: Nvidia's full-stack strategy positions it dominantly in AI infrastructure, with Bernstein analysts estimating it captures nearly 30% of profits from AI data center spending, indicating resilience despite increasing competition.
- Investor Sentiment and Risk Assessment: Although Netflix's stock has dropped 42% due to its $72 billion bid for Warner Bros. Discovery, analysts believe the risks are priced in at $87 per share, making the current valuation of $77 attractive for patient investors considering entry.
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- Significant Revenue Growth: Since its IPO in March, CoreWeave has seen revenue soar over 120%, reflecting strong demand in the AI workload market, which has attracted a large customer base and further solidified its market position.
- Flexible Business Model: The company offers a rental service for Nvidia's top graphics processing units (GPUs), allowing customers to rent by the hour, which reduces the costs associated with building their own data centers, thereby enhancing customer experience and satisfaction.
- Infrastructure Expansion Challenges: Despite high customer demand, CoreWeave's main challenge lies in building sufficient infrastructure to meet this demand, which involves taking on debt risks that could impact its financial stability.
- Close Collaboration with Nvidia: CoreWeave's close relationship with Nvidia enables it to quickly provide customers with the latest AI systems, and Nvidia's investment in the company also instills confidence in CoreWeave's future growth prospects.
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- Summit Interaction Sparks Buzz: At the India AI Impact Summit in New Delhi, OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei opted to raise fists instead of holding hands, quickly generating buzz on social media and showcasing their unique interaction style in public.
- Promising AI Future in India: Altman stated that OpenAI views India as a future AI leader, while Amodei emphasized Anthropic's belief in India's central role in advancing responsible AI, reflecting both companies' commitment to the Indian market and potential for future collaboration.
- Significant Ad Impact: Following its Super Bowl ad, Anthropic experienced a 6.5% increase in site visits and an 11% rise in Daily Active Users, demonstrating the effectiveness of its advertising strategy and solidifying its position in the AI market.
- Clear IPO Prospects: Both OpenAI and Anthropic are preparing for potential IPOs, with Anthropic's recent $30 billion funding round valuing it at $380 billion, indicating strong performance in the capital markets and future growth potential.
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