By Keithen Drury
Publication Date: 2026-02-01 16:00:00
Nvidia’s stock is set to crush the market again in 2026.
Nvidia (NVDA 0.72%) has been a no-brainer stock to own over the past few years and has delivered market-beating returns each year. While some investors may be growing concerned about an artificial intelligence (AI) bubble forming, the reality is that nearly every AI hyperscaler has plans in place to spend an incredible amount of money on AI computing capacity over the next few years. There are few companies better positioned to take advantage of this spending than Nvidia, and I think it’s an incredible stock to buy and hold not only for 2026 but also five years beyond it.
I’ve got five reasons why Nvidia is a great stock to own in 2026, but there are likely countless more out there.
Image source: Getty Images.
1. Nvidia has sold out its production capacity
Nvidia announced during its third-quarter (Q3) earnings that it has effectively sold out of its cloud graphics processing units (GPUs). That shows just how massive the demand is for Nvidia’s products. During Q3, Nvidia sold $51.2 billion of data center products, so it’s not like Nvidia is selling a small amount either.
If there remains a supply constraint on computing capacity, Nvidia can charge a premium for its products. This will help keep Nvidia’s margins high, boosting its earnings at an even faster pace than its revenue growth. Nvidia is still doing everything it can to increase production capacity, and this will be a trend to keep an eye on throughout…