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- 💥 Is Nvidia Still a Buy After a Historic Run?
💥 Is Nvidia Still a Buy After a Historic Run?
Why AI Agents Could Push NVDA Much Higher in the Next 12 Months
Bensheares Parker
January 07, 2026
In partnership with
Hi Fellow Investors,
Nvidia (NASDAQ: NVDA) enters 2026 after one of the most dominant multi-year runs in market history.
The stock’s valuation suggests Wall Street is bracing for slower AI spending despite explosive demand signals.
A new wave of agentic AI could quietly reset Nvidia’s growth trajectory once again.
Key Points:
Nvidia trades near 25 times forward earnings despite record AI demand and constrained supply.
Wall Street fears an AI infrastructure slowdown and rising competition in advanced chips.
Agentic AI workloads could drive a new surge in high-end GPU and system demand.
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Why Nvidia’s Valuation Tells a Different Story
Nvidia’s share price surged dramatically over the last three years, yet the valuation entering 2026 appears restrained relative to growth.
The stock trades around 25 times forward earnings and roughly 46 times trailing earnings.
This pricing reflects skepticism around how long AI infrastructure spending can sustain its current pace.
Investors are increasingly concerned hyperscalers may moderate capital expenditures.
That caution has capped Nvidia’s multiple despite accelerating revenue forecasts.
This disconnect sets the stage for potential upside if demand remains resilient.
Wall Street’s Biggest Fear May Be Overstated
The primary risk embedded in Nvidia’s valuation is a slowdown in AI infrastructure investment.
Concerns also include rising competition from custom silicon and rival chip designers.
However, cloud providers continue to report demand for compute capacity exceeding supply.
Nvidia is effectively selling every GPU it can manufacture.
Supply constraints remain the limiting factor rather than end-market demand.
This dynamic supports sustained pricing power and margin strength.
Agentic AI Could Be Nvidia’s Next Growth Engine
Agentic AI represents a significant evolution beyond traditional chatbots.
These systems can plan, reason, and execute complex tasks autonomously.
Such models require exponentially more compute, sometimes up to 1,000 times more than basic conversational AI.
This shift directly benefits Nvidia’s highest-end hardware platforms.
The NVLink 72 rack system is optimized for precisely these workloads.
As agentic AI adoption accelerates, infrastructure demand could rise sharply.
The Path to $300 May Be Closer Than It Appears
Analysts project Nvidia’s revenue to grow roughly 50% in the coming year.
Earnings per share are expected to rise more than 60% as operating leverage expands.
If the stock simply maintains its current trailing multiple, shares could exceed $300.
That scenario implies more than 50% upside from recent price levels.
Importantly, this outlook does not assume multiple expansion.
It assumes execution continues at today’s pace.
Strengths
Nvidia dominates AI acceleration with an unmatched ecosystem spanning hardware, software, and systems.
Demand continues to exceed supply, reinforcing pricing power and long-term customer lock-in.
Agentic AI creates a structural tailwind that competitors struggle to replicate at scale.
Weaknesses
Valuation sensitivity remains high if AI spending expectations weaken materially.
Large customers continue exploring in-house silicon alternatives to reduce long-term costs.
Heavy reliance on data-center growth ties performance to cloud capital expenditure cycles.
Potential
Agentic AI adoption could materially expand total addressable market beyond current forecasts.
Sustained earnings growth may force Wall Street to re-rate the stock higher.
Continued supply tightness could extend Nvidia’s competitive moat well into the next decade.
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Conclusion
Nvidia’s historic rally has not eliminated its forward opportunity.
Agentic AI introduces a new layer of demand that may not yet be fully reflected in forecasts.
For investors focused on long-term AI infrastructure leadership, Nvidia remains a compelling contender.
Final Thought
The greatest risk to Nvidia may not be competition or valuation.
It may be underestimating how transformative the next phase of AI truly becomes.
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