Nvidia(US:NVDA) The Motley Fool·2026-02-01 16:00Core Viewpoint - Nvidia is expected to outperform the market in 2026, driven by strong demand for AI computing capacity and new product launches [2]. Group 1: Demand and Production Capacity - Nvidia has sold out its production capacity for cloud GPUs, indicating massive demand, with $51.2 billion in data center product sales during Q3 [4][5]. - The supply constraint allows Nvidia to charge a premium for its products, maintaining high margins and accelerating earnings growth [5]. Group 2: New Technology - The upcoming launch of the Rubin architecture in 2026 will significantly enhance performance, requiring fewer GPUs for AI model training and inference [6][8]. Group 3: Market Opportunities - Nvidia is set to resume GPU shipments to China in 2026, potentially generating $60 billion to $80 billion in revenue from orders for around 2 million H200 GPU chips [9][10]. - The return to the Chinese market is crucial, as it represents a significant revenue opportunity compared to the projected $213 billion in revenue for the current fiscal year [10]. Group 4: Valuation - Nvidia's stock is considered reasonably priced at 24 times fiscal-year 2027 earnings, cheaper than many big tech peers trading at 25 to 30 times forward earnings [11][13]. Group 5: Track Record - Nvidia has a strong history of success and momentum, making it a compelling investment choice for 2026 [14].