Nvidia's Slow Start to 2026 Amid Strong AI Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: NASDAQ.COM
- Stock Performance Flat: As of January 26, Nvidia's stock remained flat while the S&P 500 rose about 1.6%, indicating investor concerns over its valuation may be leading to a shift towards other stocks.
- Strong AI Spending: According to Gartner, global AI spending is projected to exceed $2.5 trillion in 2026, a 44% increase, suggesting that despite skepticism about AI investments, the market remains optimistic about future growth potential.
- Robust Earnings Growth: Nvidia reported $57 billion in sales for Q4 2025, with a growth rate of 62% and a net income increase of 65% to $31.9 billion, demonstrating the company's strong performance in the AI sector.
- Reasonable Valuation: With a forward price-to-earnings ratio below 25, Nvidia's valuation appears attractive given its high growth potential, potentially offering a good buying opportunity for investors.
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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: 191.520
Low
200.00
Averages
264.97
High
352.00
Current: 191.520
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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