Nvidia’s stock price has risen nearly 30% in 2025 but recently pulled back due to AI bubble concerns. Despite this, the company’s GPUs remain the top computing choice for AI tasks like gaming, simulations, and cryptocurrency mining. Nvidia’s success is attributed to its powerful GPUs and technology stack, outperforming rivals like AMD.

AI hyperscalers are exploring custom AI chips to compete with Nvidia’s GPUs, but they struggle to match the broad computing capabilities Nvidia offers. The company’s GPUs are in high demand, with CEO Jensen Huang reporting that cloud GPU sales have exceeded $50 billion. Nvidia plans to increase production capacity in 2026 to meet growing demand in the AI market.

Investors can expect further growth in 2026 as AI hyperscalers increase data center expenditures. Annual capital expenditures are projected to reach $3-4 trillion by 2030, with a 38% compound annual growth rate. Wall Street analysts predict a 48% revenue growth for Nvidia next year, making the stock fairly valued for its growth potential. A conservative estimate suggests a 30% return, reaching a stock price of $221 in 2026.

Before investing in Nvidia, consider the Motley Fool’s list of the top 10 stocks for investors, which excludes Nvidia. The list has historically produced significant returns, outperforming the S&P 500. The Motley Fool holds positions in Nvidia and Advanced Micro Devices and recommends Broadcom.

Read more at Yahoo Finance: This Will Be Nvidia’s Stock Price by the End of 2026