Will Nvidia Stock Boom in 2026?

Group 1 - The introduction of generative AI by OpenAI's ChatGPT has led to a sustained boom, benefiting Nvidia as companies invest billions in its advanced computing hardware [1] - Nvidia's market cap of $4.63 trillion appears reasonable given its strong core business and growth prospects, although the future of generative AI remains uncertain [2] - Nvidia's stock is reasonably priced with a forward P/E of 25, lower than the Nasdaq-100 estimate of 26 and significantly cheaper than major tech competitors like Amazon and Apple [4] Group 2 - Nvidia's third-quarter revenue increased by 62% year-over-year to a record $57 billion, primarily driven by its data center segment and sales of GPUs for large language models [5] - The demand for Nvidia's new Blackwell GPUs is exceptionally high, contributing to a 65% year-over-year increase in net income to $31.9 billion [6] - Nvidia is executing a substantial stock buyback program, with $62.2 billion authorized, aimed at reducing outstanding shares and boosting earnings per share [7] Group 3 - While Nvidia's stock is not considered a bubble, there are concerns regarding the sustainability of AI spending in the U.S. economy, leading to skepticism about the long-term viability of its business [8]