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Prediction: This Stock Will Outperform Nvidia in 2026
The Motley Fool·2025-11-14 09:10

Core Viewpoint - Nvidia has experienced significant stock growth due to its leading position in the AI chip market, but Meta Platforms is predicted to outperform Nvidia in 2026 as it focuses on AI integration and advertising revenue growth [2][3][14]. Nvidia - Nvidia's stock has surged over 1,000% in the past three years and has increased by 43% since the beginning of 2023, driven by its dominant AI chip sales [2]. - The company has seen explosive earnings growth, with forecasts suggesting the AI market could expand from billions to trillions, supporting Nvidia's continued growth [3]. Meta Platforms - Meta Platforms is recognized as a key player in the AI growth narrative, prioritizing investments in AI technology to enhance its applications and advertising capabilities [4][5]. - The company has a vast user base of approximately 3.5 billion daily users across its platforms, making it an attractive option for advertisers [5]. - Meta's financial strength is evident, with revenue and profit growth into the billions, and it also offers dividends, which is uncommon for high-growth tech firms [6]. - Despite concerns about overcapacity in AI investments, CEO Mark Zuckerberg indicated strong demand for additional computing resources, suggesting a strategic approach to infrastructure spending [7][8]. - Meta is currently the cheapest stock among the "Magnificent Seven" tech stocks, having only advanced about 7% this year, which may attract investors looking for value [9][11]. - The company's focus on responsible AI investment and strong earnings could lead to increased stock performance in the future [11].