Is Nvidia Stock a Buy Ahead of 2026?

This article first appeared on GuruFocus.

NVIDIA (NASDAQ:NVDA) faces a pivotal moment as 2026 approaches, with investors weighing a late-December licensing deal for Groq and an upbeat guidance backdrop.

The company’s fiscal third quarter stunned markets with $57 billion in revenue, up 62% year over year and ahead of a $54 billion forecast. Management guided about $65 billion for the next quarter.

Big tech’s infrastructure moves add context. Google (NASDAQ:GOOGL)’s $4.75 billion Intersect deal, Microsoft (NASDAQ:MSFT)’s multiyear India cloud plan and Amazon (AMZN)’s massive AI commitments suggest sustained data-center demand, tailwinds for NVDA.

Margins slipped modestly; gross margin eased while net margin remained robust. A strong cash position bolsters optionality, including dividends, buybacks and strategic investments.

The Groq partnership is strategic in the eyes of analysts. It has even taken some price targets to the mid-high range from a lot of analysts. These high expectations are, however, already reflected in present valuations.

The second growth avenue is alongside data centers, autonomous mobility and NVIDIA DRIVE AVs with automakers. The potential becomes huge in the case of viable robotaxi scaling.

However, there are some Investor risks which revolve around execution, supply relationships and geopolitical risks. NVIDIA might be the essence of a growth stock, yet the purchasers ought to take into account large multiples and the challenging expectations of outlook performance.