Shares of Nvidia (NVDA) have been sideways in 2026 despite a flurry of positive news. However, with the recent GPU Technology Conference (GTC) providing further clarity on growth and product innovation, NVDA stock still seems attractive.
To put things in perspective, Nvidia CEO Jensen Huang talked about $500 billion in GPU demand last year for Blackwell and Rubin. One year down the line, Huang believes that the demand is likely to swell to $1 trillion through 2027.
On top of this, Huang believes “inference inflection” has been reached. To elaborate, whenever AI has to undertake a task, it has to use inference and tokens. Inference chips are therefore critical to producing responses. As Nvidia expands further into inference hardware for the AI era, the growth potential is significant.
Headquartered in Santa Clara, California, Nvidia is a data center-scale AI infrastructure company. With a market valuation of $4.2 trillion, the technology giant has been leading the sector rally backed by the AI boom.
For fiscal 2026, Nvidia reported robust revenue growth of 65% year-over-year (YOY) to $215.9 billion. The data center segment was the key growth and cash flow driver. It’s also worth noting that data center revenue has also reportedly increased by 13x since the emergence of ChatGPT. This puts Nvidia’s strong moat and dominance into persepctive. For fiscal 2026, operating cash flow was $102.7 billion, providing flexibility for share repurchases and investments in innovation.
While Nvidia has reported strong results and GTC 2026 provided catalysts for sustained growth, NVDA stock has remained sideways in the last six months, down by less than 1%. This presents investors with a good opportunity to accumulate a stock trading at a PEG ratio of less than 1.0.
The backbone of growth for Nvidia is sustained investment in innovation. Recently, the company announced a collaboration with Qnity for innovation in semiconductor and advanced electronics materials. The partnership will focus on “development to support next‑generation AI, high‑performance computing, and advanced packaging technologies.”
