For investors who follow semiconductors closely, Nvidia stock 2026 is shaping up to be one of the most talked-about opportunities on Wall Street. Nvidia Corporation (NASDAQ:NVDA) has long carried the label of being “overvalued,” yet history shows that waiting for the stock to look cheap has often meant missing massive upside. Interestingly, analysts now argue that Nvidia may be trading at one of its most attractive relative valuation points in years—setting the stage for a potentially strong entry ahead of 2026.

Bernstein analyst Stacy Rasgon recently highlighted that Nvidia is trading at a discount compared to both its own historical valuations and the broader semiconductor sector. Despite continued upward revisions to earnings estimates, Nvidia’s stock performance has remained surprisingly muted. That disconnect, according to Rasgon, could signal that the next leg higher has yet to begin.

Why Nvidia Stock 2026 Looks Undervalued

The core argument behind the bullish case for Nvidia stock 2026 centers on relative valuation. Over the past year, the PHLX Semiconductor Sector Index ($SOX) has gained roughly 40%, while Nvidia shares are up closer to 34%. This is notable, given that Nvidia is widely regarded as the dominant force in AI hardware and data center acceleration.

Even more compelling is Bernstein’s observation that Nvidia is currently trading at a 13% discount to the SOX index. Over the past decade, there have been only 13 trading days when Nvidia traded at a wider discount to the index. Historically, those moments have marked exceptional buying opportunities. According to Bernstein, investors who entered NVDA at similar valuation gaps went on to see average one-year returns exceeding 150%, with no negative drawdowns during those periods.

On a forward valuation basis, Nvidia trades at roughly 25 times earnings—almost identical to the Nasdaq’s ($NASX) forward P/E of 25.1x. For a company growing revenue at a far faster pace than the broader market, this parity further strengthens the case that Nvidia stock 2026 may not be priced for its long-term growth potential.

Nvidia’s AI Growth Engine Remains Intact

Fundamentally, Nvidia’s business performance continues to justify bullish sentiment. In its most recent earnings report on Nov. 19, Nvidia delivered year-over-year revenue growth of 62%, generating approximately $57 billion for the quarter. The data center segment alone accounted for $51.2 billion, underscoring Nvidia’s central role in the global AI infrastructure buildout.

Management also reaffirmed extraordinary demand visibility, citing an estimated $500 billion in potential revenue tied to its Blackwell and Rubin chip platforms. During the quarter, roughly two-thirds of Blackwell revenue came from the GB300 GPU, highlighting strong adoption from hyperscale and enterprise customers.

Looking ahead to 2026, Nvidia plans to ramp up production of its next-generation Rubin platform in the second half of the year. Rubin is expected to deliver meaningful performance gains over Blackwell, reinforcing Nvidia’s competitive moat as rivals struggle to catch up.

Strategic Partnerships Strengthen the Outlook

Another reason analysts remain optimistic about Nvidia stock 2026 is the company’s expanding ecosystem of strategic partnerships. During the earnings call, management discussed deepening relationships with HUMAIN and Amazon Web Services (NASDAQ:AMZN). These collaborations could result in the deployment of up to 150,000 AI accelerators, further locking Nvidia hardware into the world’s largest cloud platforms.

Such partnerships not only drive near-term revenue but also create long-term switching costs for customers—an underappreciated advantage in Nvidia’s valuation.

What Wall Street Expects From Nvidia Stock 2026

Wall Street sentiment toward Nvidia remains overwhelmingly positive. Out of 48 analysts covering the stock, 44 rate it as a “Strong Buy.” While a single “Strong Sell” rating stands out, it is hardly unusual for a stock that has delivered outsized gains over the past decade.

Price targets suggest meaningful upside remains. The highest analyst target of $352 implies the stock could nearly double, while the average target of $256 points to approximately 36% upside from current levels. If Nvidia continues executing on its AI roadmap, those projections may prove conservative.

The Bottom Line on Nvidia Stock 2026

For long-term investors, Nvidia stock 2026 represents a rare combination of strong fundamentals and discounted relative valuation. With AI demand accelerating, next-generation chips on the horizon, and Wall Street signaling confidence, January 2026 could mark a compelling entry point. While volatility is always part of owning NVDA, history suggests that buying Nvidia during periods of valuation skepticism has often been rewarded handsomely.