Zacks Investment Ideas feature highlights NVIDIA

For Immediate ReleaseChicago, IL – January 7, 2026 – Today, Zacks Investment Ideas feature highlights NVIDIA NVDA.NVIDIA: The 2026 AI CaptainThe AI frenzy is set to continue throughout 2026, driven in large part by significant CapEx for the underlying infrastructure. We’ve seen several companies benefit in a huge way from the investments, with the poster child being none other than NVIDIA.To put it lightly, the growth from the AI favorite has been unlike anything we’ve seen, with a comparable example being Tesla roughly a decade and a half ago. And with success has come criticism, with many wondering if things are too good to be true.The reality remains that companies across all industries, and many governments, want access to NVIDIA’s AI GPUs, already inking deals with the Kingdom of Saudi Arabia (KSA), the South Korean government, and the U.K., just to name a handful.And we’re all familiar with NVIDIA's role concerning the Mag 7’s CapEx plans, supplying the compute backbone that these mega-cap tech titans need to scale their AI infrastructure.Previous Quarterly ResultsNVIDIA yet again posted a double-beat relative to our consensus expectations in its latest record-setting release, with sales of $57 million growing 62% alongside a 67% jump in EPS. Data Center revenue of $51.2 billion grew a rock-solid 66% from the year-ago period, which also crushed our consensus estimate of $49.1 billion.As reflected by these results, the demand picture certainly isn’t an issue for the AI favorite, with companies continuing to rapidly seek out compute power. Our consensus estimates support the rosy picture, with EPS expected to soar 55% on 62% higher sales in its current fiscal year. FY27 is looking mighty strong as well, with current expectations suggesting 56% EPS growth on 43% higher sales.Are Shares Too Expensive?Shares aren’t expensive on a historical basis, with the current 26.7X forward 12-month earnings multiple well below the 42.4X five-year median and steep five-year highs of 106.3X.Keep in mind that NVDA shares traded well above current valuation levels in 2020 and 2021, when the AI theme had not yet fully emerged and shares were primarily driven by its gaming results. The current multiple reflects a 16% premium relative to the S&P 500, among the lowest we’ve seen over the last five years.It’s valid to watch for red flags within the broader AI story, especially given some of the lofty forecasts that we’ve seen some companies dish out. It’s important to remember that NVIDIA’s success, of course, depends on the hardware side, which has a much more visible demand picture.In harsher words, NVDA still gets paid even if the companies it sells AI GPUs to don’t survive.All in all, the specific results that NVIDIA has been reporting do reflect reality. Companies are frantically sourcing AI GPUs, and governments are also inking massive deals with the tech titan to do the same. While 2026 will be likely full of AI ‘losers’, NVIDIA will undoubtedly keep winning.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks