Up 39%! Could Nvidia stock do it again in 2026?

Coming into last year, US chip giant Nvidia (NASDAQ: NVDA) had already had a brilliant 12 months. Business growth was outstanding and Nvidia stock had been a strongly-performing market darling. Many investors had some scepticism about how it might fare last year.

From the start of 2025 until around the end of December, though, Nvidia stock soared by 39%.

With a market capitalisation of a staggering $4.5trn, it is not only the most valuable listed firm today; Nvidia also holds the crown as the most valuable listed firm in history.

The weight of expectations sits heavily on many companies. But might it just be possible that the stock does it again and puts in yet another brilliant performance in 2026?

I think it is possible.

Nvidia did not become the US stock market’s biggest company simply by having a compelling sales pitch and riding a wave of hype about AI.

It has spent decades designing chips. Its industry expertise, proprietary designs and deep experience are all competitive strengths.

The business was solidly successful even before the AI hype took off.

Nvidia was in the right place at the right time not by accident, but thanks to a carefully crafted and executed corporate strategy that has consistently seen its business perform well over several decades.

It is now a hugely profitable and cash flow generative business.

Its most recent quarter saw revenues grow 62% year on year to $57bn. Operating free…