By Adam Levy
Publication Date: 2025-12-28 17:00:00
Key Points
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This AI company is making popular AI chips and developing a leading large language model.
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It should see strong sales growth across its hardware business while more developers license its model.
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The stock trades for a value relative to Nvidia, and strong growth across multiple businesses could send shares higher in 2026.
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Nvidia has been one of the best-performing stocks in the current bull market. The stock has increased by more than 1,000% since the release of ChatGPT, which kicked off the artificial intelligence (AI) spending spree among big tech stocks. Nvidia has been a huge beneficiary of the growing spend on artificial intelligence infrastructure, as its GPUs are best in class for training large language models.
Despite its status as the largest company in the world with a market cap of around $4.5 trillion, analysts think Nvidia could keep climbing higher in 2026. The median price target on the stock is $250, about 30% higher than the stock price as of this writing. That would make it a $6 trillion company.
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But another AI leader looks poised to outperform the chipmaker in 2026 thanks to its momentum across hardware, software, and real-world applications of AI. Here’s why I expect Alphabet (NASDAQ: GOOG) (NASDAQ:…
