By Keithen Drury
Publication Date: 2025-12-22 12:00:00
Key Points
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Nvidia’s GPUs are still the best computing option available.
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The company has delivered incredible growth in 2025.
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The stock price is reasonable for Nvidia’s valuation.
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Nvidia (NASDAQ: NVDA) shares have had an excellent run in 2025, rising just shy of 30%. However, the stock has pulled back in recent weeks due to concerns of a potential artificial intelligence (AI) bubble. This weakness could be a great buying opportunity, as the AI buildout still looks like it’s going full steam ahead, despite what the market wants.
To estimate what kind of returns we can get by buying Nvidia’s stock now, we need to come up with a price target for Nvidia’s stock for the end of 2026. Let’s do some analysis on its growth and valuation. If Nvidia hits the growth laid out, it’s going to be a great stock to own in 2026.
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Image source: Nvidia.
Nvidia’s computing units offer advantages over other offerings
Nvidia makes graphics processing units (GPUs), accelerated computing units that can perform multiple tasks in parallel. This makes them great for heavy workloads, like processing gaming graphics, engineering simulations, drug discovery, and mining cryptocurrency.
However, its biggest use case by far is artificial intelligence. AI requires unprecedented levels of computing…
