Nvidia (NVDA) stock, known for being overvalued, is now considered undervalued by Bernstein analyst Stacy Rasgon. Despite historical valuations and AI investments, the stock has not seen significant returns, suggesting potential upside in 2026. Nvidia is trading at a 13% discount to the PHLX Semiconductor Sector Index, a rare occurrence that indicates a unique valuation opportunity. Strong buy ratings from analysts and a consensus price target with upside potential make 2026 an exciting year for Nvidia investors.

Nvidia reported impressive earnings with a 62% YoY growth in revenue, totaling $57 billion in the quarter. Data center revenue accounted for $51.2 billion, with continued forecasted demand for products and new partnerships expanding. Analysts are bullish on Nvidia, with 44 “Strong Buy” ratings and a mean target price suggesting a 36% upside potential. 2026 looks promising for Nvidia stock.

Read more at Barchart: Wall Street Did the Math, and January 2026 Could Be a Prime Time to Buy Nvidia Stock