By Sean Williams
Publication Date: 2026-01-14 00:00:00
Key Points
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The rise of artificial intelligence (AI), led by Nvidia, has fueled the stock market’s three-year rally.
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Nvidia’s superior graphics processing units (GPUs) have led to otherworldly pricing power and mouthwatering margins.
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However, history has a way of rhyming on Wall Street — and that’s potentially bad news for the world’s most valuable public company.
- 10 stocks we like better than Nvidia ›
The third year of Wall Street’s bull market rally didn’t disappoint. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all rallied by double-digit percentages and achieved several record-closing highs.
The catalyst behind this breakneck optimism is the rise of artificial intelligence (AI), which has been spearheaded by Nvidia (NASDAQ: NVDA). Since the beginning of 2023, Nvidia has added more than $4.1 trillion in market value and briefly became the only public company to ever reach the $5 trillion market cap plateau.
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Image source: Getty Images.
Empowering software and systems with the ability to make split-second decisions without human intervention is a game-changing technology with a multitrillion-dollar global appeal. Unfortunately, it’s also a technology that has to contend with historical headwinds.
Although Nvidia stock finds itself within striking distance of $200 per share, history…
