Over the past five years, Nvidia shares have surged more than 1,100%, propelling the company to the top of global market capitalization by the end of 2025, surpassing Apple. However, growth slowed in 2025, with competitors such as Intel, Broadcom, and AMD delivering higher returns. This raises a key question for investors: should they continue to hold Nvidia shares, or is the stock overvalued, making it more prudent to explore undervalued opportunities? This review offers insights into whether to buy, hold, or sell Nvidia shares in 2026.
The article covers the following subjects:
Major Takeaways
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Nvidia is one of the world’s leading companies in the semiconductor sector. Its graphics processing units (GPUs) are used in robotics, cloud computing, neural network development, machine learning, and AI, as well as in automated systems.
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Over the past five years, Nvidia’s stock has gained 1,325%, making it the world’s largest company by market capitalization by the end of 2025, overtaking Apple.
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In 2025, NVIDIA delivered a stock return of 53.26%, lower than those of its main competitors: AMD, Broadcom, and Intel.
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For the next five years, the company has forged strategic partnerships with major tech firms such as Meta and Samsung, while investing billions of dollars in OpenAI and other innovative startups.
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NVDA shares are expected to continue appreciating, though likely at a more moderate pace. The stock remains suitable for diversifying a long-term investment portfolio.
Nvidia Stock Performance in 2026
In 2025, Nvidia delivered record-breaking financial results, in line with analysts’ expectations.
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Price-to-Earnings (P/E): 36.77 – Although this figure is high, it still lags behind levels seen in previous periods. The market average ranges from 20 to 25. For fast-growing tech companies, such a P/E is acceptable, reflecting market expectations of strong future earnings growth. For Nvidia, the elevated P/E reflects expectations of growing demand for chips used in AI and data centers.
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Forward P/E: 16.51 – Significantly lower than the current P/E, this indicates that analysts expect a sharp increase in earnings. The market suggests the company’s earnings could nearly double, indicating potential undervaluation.
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PEG Ratio: 0.43 – A value below 1 is generally considered a sign of undervaluation. In this case, earnings growth is more than twice the pace of stock price growth, signaling strong expected earnings momentum in the coming years.
Regarding other financial metrics, the company is outperforming the industry average by a significant margin.
Should You Buy Nvidia Stock?
Is NVDA a good stock to buy? The answer depends on your investment goals. It is unlikely that you will be able to double your investment quickly, as the AI boom is largely behind us. However, Nvidia remains a leader in the development of graphics processors and artificial intelligence solutions. The company has long-term contracts with the world’s leading tech giants, and there is currently no reason to believe it will lose significant ground over the next 1–3 years.
For a short-term trader, it makes more sense to consider other high-yield but riskier assets. For a long-term investor, NVDA is definitely a good buy as growth is likely to continue.
Meanwhile, long-term investors should note that the company pays almost no dividends. The annual yield is approximately 0.022% or $0.04 per share.
Explosive Revenue and Earnings Growth
On January 25, 2026, Nvidia reported fiscal quarterly results that set records across multiple metrics. Total revenue reached $68.1 billion, representing a 73% year-over-year increase and marking a new quarterly high.
The Data Center segment was the primary growth driver, with revenue rising 75% year-over-year to $62.3 billion, fueled by strong demand for AI infrastructure, GPUs, and data center computing platforms. Net income for the quarter totaled $43 billion, up 94% year-over-year.
Performance across other segments remained stable. The gaming division continues to expand, although its share of total revenue is gradually declining. Meanwhile, the company’s automotive, engineering, and AI-driven solutions segments are steadily expanding.
Should I Sell Nvidia Stock?
Some investors believe that NVDA stock has already captured most of its upside potential and that any further gains are likely to be more modest compared to previous years. This view is largely driven by intensifying competition, which could erode the company’s market share and revenue growth.
Supporters of this perspective argue that it may be prudent to lock in profits at current levels and reallocate capital toward competitors with stronger near-term growth prospects.
Rising Competition Threatens Market Share
In 2025, Nvidia’s market capitalization exceeded $5 trillion, but fell to $4.3 trillion in 2026. Nevertheless, it retained its status as the world’s largest company by market capitalization, even though its competitors posted higher returns.
Nvidia’s stock price and returns over the past year:
The company’s 5-year return is as follows:
The slowdown in Nvidia’s growth over the past year points to intensifying competition in the semiconductor and AI sectors.
Although TSMC is not a direct competitor, the two companies operate within closely related segments of the industry. As a result, some investors may consider reallocating capital from NVDA into other sector players, including established blue-chip companies. In the US market, Nvidia’s key competitors include Intel and Broadcom, while in the AI space, China’s DeepSeek is also emerging as a notable player.
Macro and Market Risks
Macroeconomic and market risks are key factors in shaping the external environment in which a company operates. Economic shifts, exchange rate fluctuations, inflation, and market volatility can significantly affect business performance and strategic decisions. Understanding and timely assessment of these factors allows investors to minimize potential losses and enhance business resilience.
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Economic slowdown and reduced IT spending. In the event of a global recession, companies may cut back on investments in data centers and AI infrastructure, directly reducing demand for Nvidia GPUs.
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Reduced customer dependence. Amazon, Google, Microsoft, and Meta are developing their own AI processors to reduce their reliance on Nvidia.
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Geopolitical restrictions. US export restrictions on AI chip shipments to China could shrink one of the company’s key markets.
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Dependence on supply chains. Chip production is concentrated at TSMC (Taiwan), so any disruptions in manufacturing or logistics could affect shipments and revenue.
Analysts assess the likelihood of these risks materializing as low, but they still remain a possibility.
Should You Hold Nvidia Stock?
It definitely makes sense to have Nvidia shares in your portfolio. According to analysts, concerns about an AI bubble are largely overblown. The technology is still in the early stages of development and is far from reaching full maturity. Despite the rapid integration of AI into everyday life, it is not yet capable of fully replacing human expertise in key roles, which suggests that companies will continue to invest heavily in technological advancement. As one of the industry leaders, Nvidia is well-positioned to benefit from this trend, with its solutions likely to remain in strong demand.
Over the past year, Nvidia has announced a number of long-term initiatives in the field of AI:
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In March 2026, the company announced plans to invest $2 billion in Nebius (NBIS) to support the construction of AI-focused data centers. This initiative is part of a broader program to develop 5 GW of capacity by 2030. Nvidia remains a minority shareholder and has emphasized its openness to collaboration across the industry. Previously, it signed a similar $2 billion agreement with CoreWeave.
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In February 2026, Nvidia entered into a multi-year agreement with Meta to supply millions of chips for AI infrastructure. The financial terms of the deal were not disclosed.
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In December 2025, the company formed a strategic partnership with Groq, a startup specializing in processors for accelerating neural networks. In a deal valued at $20 billion—the largest in Nvidia’s history—the company gained access to Groq’s technologies and key assets.
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In October 2025, Nvidia announced its plan to supply Samsung and Hyundai with 260,000 advanced processors.
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In September 2025, discussions were held regarding a potential $110 billion funding round for OpenAI ahead of a possible IPO. Nvidia was expected to contribute $30 billion, alongside Amazon ($50 billion) and SoftBank ($30 billion), to build large-scale AI data center infrastructure.
These examples demonstrate that the company remains committed to maintaining and expanding its market share. Nvidia is a growth stock because the company is forming long-term strategic partnerships with major tech companies, indicating sustainable future growth.
Is Nvidia Overvalued?
Nvidia is unlikely to lose ground to its rivals, and its stock is not expected to plummet in the near future. At the same time, the stock will unlikely surge by more than 1,000% over the next five years. Over the long term, the company’s stock is projected to grow at a moderate pace of 30–50% annually.
Meanwhile, risks cannot be ruled out. For example, an escalation of tensions around Taiwan—one of the key hubs of the global semiconductor industry—could represent a potential black swan event. At the same time, recent geopolitical developments have shown that Nvidia’s stock has been relatively resilient to such shocks.
Against this backdrop, there is little evidence to suggest that NVIDIA shares are significantly overvalued or at risk of panic selling. A sharp decline would more likely require a severe downturn in the US and global economies, comparable to events such as the Dot-com bubble burst of 2000 or the Global financial crisis of 2008.
Conclusion
Buy, sell, or hold Nvidia stock—the answer depends on your goals:
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Buy Nvidia stock. Suitable for long-term investors with a relatively conservative approach who are focused on steady portfolio growth rather than short-term gains. Within a diversified portfolio and a time horizon of five years or more, NVDA remains an attractive asset.
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Sell Nvidia stock. Relevant for investors who entered the position several years ago and are now looking to lock in profits or reallocate capital toward higher-growth opportunities. With much of the stock’s rapid appreciation already realized, some may prefer to explore emerging sectors such as robotics or biotechnology.
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Hold Nvidia stock. Appropriate for passive, long-term investors. If capital constraints are not a concern, maintaining the position may be preferable, particularly given the company’s continued growth prospects and dividend income.
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Should You Buy, Sell, or Hold Nvidia Stock FAQs
Price chart of NVDA in real time mode
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