Nvidia Corporation (NASDAQ:NVDA) has bulldozed its way to the heart of the AI conversation, delivering massive gains along the way. In fact, multiple years of incredible growth have turned the firm into the most valuable publicly traded company in the world.
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However, nothing lasts forever. While Nvidia reached record revenues of $57 billion in the last quarter, and guided for even higher sales in the current one, it is no longer matching its previous pace of triple-digit growth.
When it comes to the company’s share price, fears of an AI bubble have been pressuring stock prices throughout the ecosystem. In addition, the “will they, won’t they” saga of Nvidia’s H200 exports to China continues. In the most recent salvo, reports have emerged that China is now blocking the AI chips from entering the country.
The company’s share price has been fairly range-bound during the first few weeks of the year, and perhaps one could be forgiven for wondering whether Nvidia will remain a market-beating investment in 2026.
Investor Daniel Foelber is confident it will be, believing that the growth story is set to continue in 2026.
“Nvidia continues to be a fundamentals-led growth story rather than one of hype and hot air,” emphasizes the 5-star investor.
Foelber points out that the company has already surpassed its prior guidance of $500 billion in Blackwell and Rubin orders for Fiscal 2026. The investor is especially bullish regarding the new Rubin products, which are slated for delivery later this year.
He explains that Rubin has achieved “massive efficiency improvements” over Blackwell. This includes a 90% reduction in inference token costs and a 75% reduction in the number of GPUs needed for training AI models. In other words, the company’s technological superiority should help it sustain high margins.
“Nvidia can justify charging high prices for its Rubin products because they should improve performance, and therefore lower data center operating costs for customers,” adds Foelber.
Therefore, the investor is comfortable with Nvidia’s 39x forward price-to-earnings ratio, calling it reasonable for the “red hot” company.
“Until demand cools off, there’s every reason to believe Nvidia can continue rewarding long-term investors,” sums up Foelber. (To watch Daniel Foelber’s track record, click here)
Wall Street is humming along to the same tune. With 39 Buys and just one Hold and one Sell, NVDA cruises to a Strong Buy consensus rating. Its 12-month average price target of $263.44 would translate into gains north of 40% in the year ahead. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.