Core Insights - Nvidia has been a significant player in the AI revolution but has underperformed compared to its semiconductor peers in 2025 [2][5] - As 2026 approaches, investors are questioning whether Nvidia remains a viable investment or if they should consider reallocating their capital [3] Company Performance - Nvidia's data center business is crucial, contributing significantly to its revenue and profits through demand for its GPUs [4] - Despite strong historical performance, Nvidia's valuation is becoming more attractive as its stock has lagged behind competitors [5] Future Catalysts - Investors should focus on Nvidia's upcoming Rubin chips, with a current order backlog of approximately $500 billion for Blackwell, Rubin, and related products, of which $300 billion is expected to be recognized in 2026 [6] - Anthropic has signed a $30 billion compute capacity agreement with Microsoft, utilizing Nvidia's Blackwell and Rubin chips [7] Market Trends - Goldman Sachs projects that major hyperscalers like Microsoft, Alphabet, Amazon, and Meta Platforms will spend around $500 billion on AI capital expenditures in the coming year [8] - McKinsey & Company forecasts that AI infrastructure will represent a $7 trillion opportunity over the next five years, indicating a significant growth potential for Nvidia [8] Strategic Considerations - Investors should monitor the broader trends in infrastructure investment, as these will likely impact Nvidia's performance beyond its core data center operations [9]