Nvidia Stock Stuck in Consolidation Mode Amid AI Spending Risks
Nvidia's stock price has been relatively flat in 2026, with only a 5% year-to-date gain. This is a marked change from the surge in AI-related demand that saw the company's shares skyrocket between 2023 and 2025.
Despite this consolidation, Nvidia's fundamentals remain strong. The company's revenue for fiscal year 2026 hit $215.9 billion, a 65% increase from last year. In Q4, data center sales reached $62.3 billion, a 75% jump year-over-year. CEO cites 'exponential' demand for Blackwell inference chips.
The company's growth engine is still intact, but there are risks on the horizon. The pace of big tech AI spending could slow down, and competition from AMD and Google's Tensor Processing Units (TPUs) may increase. Additionally, supply limits at TSMC, Nvidia's manufacturing partner, could also impact production.
For now, Nvidia's stock price is priced in, with a market cap of around $5.42 trillion and a price-to-earnings ratio of 33.98. Any significant move in the company's shares will likely be tied to news or earnings related to AI spending.