By David Jagielski
Publication Date: 2026-01-29 17:00:00
Key Points
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Nvidia’s stock has been sluggish to start 2026, as investors may be thinking twice about its valuation.
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Spending on artificial intelligence is expected to remain strong in the near future.
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Nvidia’s business remains in incredible shape, with its most recent growth rate being above 60%.
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It’s been a bit of a lackluster start to 2026 for chipmaker Nvidia (NASDAQ: NVDA). As of Jan. 26, its shares were flat to start the year, while the S&P 500 is up around 1.6%.
This is unusual territory for a tech stock that’s usually leading the rally. Investors have been pivoting to other stocks, likely out of concern that Nvidia may have gotten too expensive. At $4.5 trillion in market cap, it’s easily the most valuable stock on the market right now.
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Whether you think Nvidia remains a good buy may ultimately hinge on how much more growth you expect from the business in the years ahead. If a recent forecast is true, then the AI stock could still be a relatively cheap buy right now.
Image source: Getty Images.
There’s still plenty of AI spending expected in the near future
You may have heard that AI projects aren’t paying off for many companies, and that there are concerns that tech companies are spending too aggressively. While that is true, that doesn’t…
