{"id":263517,"date":"2026-02-02T05:45:12","date_gmt":"2026-02-02T05:45:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/263517\/"},"modified":"2026-02-02T05:45:12","modified_gmt":"2026-02-02T05:45:12","slug":"is-this-artificial-intelligence-ai-winner-about-to-take-off-in-2026","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/263517\/","title":{"rendered":"Is This Artificial Intelligence (AI) Winner About to Take Off in 2026?"},"content":{"rendered":"<p>Nvidia&#8217;s 2025 was fairly lackluster compared to previous years.<\/p>\n<p>Over the past three years, there have been few better stocks to own than Nvidia (<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/nvda\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">NVDA<\/a> 0.72%). From 2023 to 2025, the stock has risen by more than 800%.\u00a0However, most of Nvidia&#8217;s returns were from 2023 and 2024, as it only rose 39% in 2025.<\/p>\n<p>This makes me curious whether Nvidia&#8217;s stock is about ready to take off in 2026. For fiscal year 2026 (ending January 2026), Wall Street analysts expect 63% revenue growth, so its stock rose far more slowly than its revenue grew. This could be a clear sign that Nvidia&#8217;s stock is about to take off, and I think 2026 could be a far better year for the shares than 2025.<\/p>\n<p><img alt=\"Investor celebrating a huge stock win.\" loading=\"lazy\" width=\"880\" height=\"587\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/1770011111_246_.jpeg\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>If you don&#8217;t own a ton of Nvidia stock, now is the time to load up<\/p>\n<p>For fiscal year 2027 (ending January 2027), Wall Street analysts expect 52% revenue growth. That clearly shows that demand for its <a href=\"https:\/\/www.fool.com\/terms\/g\/gpu\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">graphics processing units (GPUs)<\/a> isn&#8217;t slowing down. Nvidia has told investors that this <a href=\"https:\/\/www.fool.com\/terms\/a\/artificial-intelligence\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> computing megatrend will last through at least 2030, leaving several years of incredible growth to go.<\/p>\n<p><img alt=\"Nvidia Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/1770011111_411_.png\"\/><\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(-0.72%) $-1.38<\/p>\n<p>Current Price<\/p>\n<p>$191.13<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$4.6T<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$189.47 &#8211; $194.49<\/p>\n<p>52wk Range<\/p>\n<p>$86.62 &#8211; $212.19<\/p>\n<p>Volume<\/p>\n<p>179M<\/p>\n<p>Avg Vol<\/p>\n<p>182M<\/p>\n<p>Gross Margin<\/p>\n<p>70.05%<\/p>\n<p>Dividend Yield<\/p>\n<p>0.02%<\/p>\n<p>At the midpoint, Wall Street analysts believe that Nvidia will generate $7.66 in earnings per share (EPS) next year. Next, we need to determine a reasonable valuation for Nvidia. The four next-largest companies trade at nearly identical <a href=\"https:\/\/www.fool.com\/terms\/p\/pe-ratio\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">price-to-earnings (P\/E)<\/a> ratios, so using a valuation of 33 times earnings is a fair analysis.<\/p>\n<p><a href=\"https:\/\/ycharts.com\/companies\/AAPL\/chart\/\" class=\"text-cyan-900 hover:text-cyan-800\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img alt=\"AAPL PE Ratio Chart\" loading=\"lazy\" width=\"720\" height=\"490\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent;max-width:720px\"   src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/bc563871fcccfff35d7ff17550cb5fc3.png\"\/><\/a><\/p>\n<p class=\"caption\"><a href=\"https:\/\/ycharts.com\/companies\/AAPL\/pe_ratio\" class=\"text-cyan-900 hover:text-cyan-800\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">AAPL PE Ratio<\/a> data by <a href=\"https:\/\/ycharts.com\" class=\"text-cyan-900 hover:text-cyan-800\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">YCharts<\/a>. PE Ratio = price-to-earnings ratio.<\/p>\n<p>With a P\/E ratio of 33 and EPS of $7.66, that would price the stock at $253 by the end of the fiscal year. That&#8217;s a 35% gain, which is slightly less than its 2025 performance.<\/p>\n<p>However, I don&#8217;t think it&#8217;s fair to value Nvidia at the same P\/E ratio as its big tech peers. The reason? None of them is growing remotely as fast as Nvidia. Currently, Nvidia has a P\/E ratio of 46, which is probably worth it for the growth it&#8217;s delivering. If Nvidia maintains a P\/E of 46, then its stock price would be $352 by the end of the fiscal year &#8212; or about an 87% return.<\/p>\n<p>If I present you with a stock that likely has a one-year return floor of 35% or a ceiling of 87%, you&#8217;d likely go all-in on that stock. That&#8217;s where I expect Nvidia to be throughout 2026, <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/how-to-invest-in-nvidia-stock\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">making it a strong buy right now<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia&#8217;s 2025 was fairly lackluster compared to previous years. Over the past three years, there have been few&hellip;\n","protected":false},"author":2,"featured_media":263518,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":{"0":"post-263517","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/263517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=263517"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/263517\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/263518"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=263517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=263517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=263517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}