Nvidia's Stock Surge Amid AI Revolution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy NVDA?
Source: Fool
- Significant Stock Growth: Nvidia's stock has surged 700% over the past three years, driven by the acceleration of the AI revolution, which has led to double and triple-digit revenue and profit growth, with the latest fiscal year revenue surpassing $130 billion, indicating strong market demand.
- Increased Market Competition: While Nvidia remains a leader in AI chip design, it faces pressure from competitors like AMD and challenges from some customers who produce their own chips, which could impact its market share and future growth potential.
- Investor Confidence Fluctuations: Recently, investors have expressed concerns about the high valuations of AI stocks, leading Nvidia's price-to-earnings ratio to drop to its lowest level in nearly a year; however, AI spending remains robust, with expectations that the market will reach trillions in the coming years.
- Diversified Investment Strategy: Experts recommend that investors choose a variety of quality companies to minimize risk, with Nvidia being an ideal choice for growth-oriented investors, especially at current valuations, potentially providing significant wealth growth opportunities.
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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.
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- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- 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
SOFTBANK GROUP CORP SELLS OFF ITS SHAREHOLDING IN NVIDIA CORP - SEC FILING
SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
Nvidia Exits Investment in Applied Digital
- Shareholding Changes: As of December 31, 2025, Nvidia sold its $177 million stake in Applied Digital, causing the company's stock to tumble nearly 8% in after-hours trading, reflecting market concerns about its future prospects.
- Investment History: Nvidia's initial investment of $160 million in Applied Digital in September 2024 aimed to bolster its AI infrastructure, but the recent exit indicates a waning confidence in the project's viability.
- Market Reaction: Over the past 24 hours, sentiment on Stocktwits regarding APLD has remained extremely bearish, with low message volumes indicating a lack of investor confidence in the tech sector, despite some urging to 'buy the dip'.
- Other Investment Dynamics: Nvidia's latest 13F filing reveals not only its exit from Applied Digital but also increased positions in Intel, Nokia, and Synopsys, while divesting from Arm Holdings and Recursion Pharmaceuticals, indicating a significant portfolio shift.
See More
Stock Market Rebounds Slightly, Nvidia Gains from Meta AI Deal
- Market Rebound: The stock market experienced a slight rebound on Tuesday, despite remaining divided, indicating cautious optimism among investors that may provide some support for future trading.
- Nvidia Gains: Nvidia's stock rose late in the session due to a deal with Meta in the AI sector, highlighting its ongoing leadership in AI and potential new growth opportunities for the company.
- AMD and Broadcom Decline: In contrast, AMD and Broadcom saw their stock prices slump, reflecting market concerns about the semiconductor industry, which could impact investor confidence and future investment decisions in this sector.
- Divergent Investor Sentiment: While Nvidia performed strongly, the overall market sentiment remains divided, prompting investors to closely monitor industry dynamics and company fundamentals to make more informed investment choices.
See More
Meta Partners with Nvidia for AI Infrastructure Enhancement
- Strategic Partnership Deepening: Meta has entered into a multi-year strategic partnership with Nvidia, planning to adopt Nvidia's Confidential Computing technology for WhatsApp, enhancing user data confidentiality and integrity while introducing AI-powered features, further advancing Meta's AI infrastructure development.
- Data Center Upgrade: Meta will deploy Nvidia's Grace CPUs for the first large-scale application in its data center production, expected to significantly improve performance per watt, enhancing operational efficiency and supporting Meta's ambitions in AI.
- Increased Capital Expenditure: In its latest earnings report, Meta projected capital expenditures between $115 billion and $135 billion for 2026, a substantial increase from $72.22 billion in 2025, primarily aimed at developing Meta Superintelligence Labs, highlighting its commitment to AI technology.
- Market Reaction: In recent market activity, Meta's shares rose 0.89% in after-hours trading, while Nvidia's shares increased by 1.25%, despite Meta's stock declining over 10% in the past year, indicating cautious optimism in the market regarding the new partnership.
See More
Top AI Stocks to Watch for 2026
- Nvidia's Growth Potential: Nvidia is projected to achieve a 57% annual growth rate in 2026, despite a year-over-year decline, reflecting strong market demand, particularly as AI capital expenditures are expected to exceed $500 billion, indicating rapid industry expansion.
- TSMC's Critical Role: TSMC anticipates nearly 30% revenue growth in 2026, while AI-related chip revenue is expected to grow at a compound annual growth rate of nearly 60% from 2024 to 2029, underscoring its importance and future growth potential in the AI supply chain.
- Nebius Group's Rapid Ascent: Nebius Group's annual run rate is expected to reach $1.25 billion in 2025 and soar to between $7 billion and $9 billion by the end of 2026, showcasing its strong growth potential in the AI cloud computing market, making it a potential top stock for 2026.
- Overall AI Industry Outlook: As AI technology continues to evolve, investors will see more companies benefiting from this trend, particularly in the chip design and manufacturing sectors, which are expected to become investment hotspots in the coming years.
See More
