As we get deeper into 2026, artificial intelligence (AI) continues to dominate the market conversation. But whereas a few months ago, Wall Street was worried about astronomical AI spending, it's becoming clearer that it has a major place at every table, and that the investments are likely to pay off.
There are many AI stocks that are worth buying today, but none is more central to the developing story than Nvidia (NVDA +2.59%). So while it might not be the surprising stock that Wall Street is talking about, it's still the AI stock everyone is talking about.
Image source: Getty Images.
The AI linchpin
Nvidia has made itself an invaluable part of AI development. Its graphics processing units (GPUs), originally geared toward the gaming market since they can handle so much data, have been repurposed to serve the AI market.
GPUs are uniquely qualified for the job, managing the heavy loads it requires for research, inference, and reasoning. While other companies have been scrambling to release their own capable AI chips, none of them compete with the full power of the Nvidia versions, making them indispensable to AI developers.
Far from basking in its top position and taking a breather, the company keeps pumping out new and improved products at a dizzying rate, ensuring that it remains an integral element of its clients' programs. It recently launched the Vera Rubin platform that's both more powerful and less costly than the previous Blackwell line. Management said that data center power is still constrained, and it has enough inventory to meet demand through 2027 for both Blackwell and Rubin.
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Another reason Nvidia looks poised to keep growing is that its newer products reinforce its economic moat. They work together, and clients that buy in are invested in their systems, creating high barriers to entry.
Putting it all together, it's impressive -- but not surprising -- that despite its enormous base, revenue growth has been accelerating. Sales increased 73% year over year in the fiscal 2026 fourth quarter (ended Jan. 25), up from 62% in the third quarter. Wall Street expects it to keep that up, with a 79% increase as the average target consensus for the fiscal 2027 first quarter.
Wall Street may be talking, but it's not buying
The market has been unimpressed with Nvidia over the past few months despite its continued growth and prospects. With a high valuation, perceived hyperscaler overspending, and uncertainty about the future, the stock is 12% off its all-time high from October, including a recent boost from the Iran war ceasefire announcement.
The chipmaker's shares may need some fresh juice to make the next big jump, but that jump is likely on the way. As long as AI remains the market's driving force, Nvidia stock should be headlining it.