By David Jagielski, CPA
Publication Date: 2026-01-30 02:05:00
Spending on artificial intelligence is projected to grow by more than 30% in both 2026 and 2027.
It’s been a bit of a lackluster start to 2026 for chipmaker Nvidia (NVDA +0.52%). 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.
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 mean spending is due to slow anytime soon. It’s still the early innings of AI development, and many projects will inevitably fail, but many new ones will also begin. As companies become more familiar with and comfortable using AI, there’s the possibility for more of these projects to start paying off.
According to a recent report from research firm Gartner, AI spending is expected to top $2.5 trillion this year, which is an…