This Artificial Intelligence (AI) Stock Will Be Worth Twice as Much by the End of 2026

Artificial intelligence (AI) stocks hit headwinds in 2026, as evidenced by the 3% year-to-date decline in the Global X Artificial Intelligence & Technology ETF, which invests in companies developing AI hardware and software, apart from using the tech in their operations.

Nvidia (NASDAQ: NVDA), arguably the biggest name in AI, has shared the broader market’s pain. Nvidia stock is down about 1.6% in 2026 (and was down as much as 12% in late March), even though there are no signs of a slowdown in its business. This pullback seems like a buying opportunity, especially considering that this AI pioneer could see its shares double by the end of the year.

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Let’s see why Nvidia could see a parabolic jump in its stock price in 2026.

Nvidia’s fiscal 2026 (which ended on Jan. 25, 2026) finished on a high note. Its fiscal fourth-quarter revenue shot up 73% year over year to $68 billion, exceeding the full-year 65% growth to $216 billion. Its earnings per share rose by 82% year over year in the quarter, while annual earnings grew 60% to $4.77 per share.

The numbers are impressive, but what’s worth noting is that Nvidia is likely to do even better in the new fiscal year (which coincides with the majority of 2026). The chipmaker’s Blackwell and Vera Rubin chip platforms have been a runaway hit among customers, driven by their ability to tackle both AI model training and inference workloads.

As a result, Nvidia anticipates a whopping $1 trillion in revenue from the Blackwell and Rubin chip systems in 2026 and 2027. That’s double the revenue it originally anticipated for these two platforms in 2025 and 2026, clearly suggesting that the latest Rubin systems are gaining terrific traction.

Again, that’s not surprising, as Nvidia claims its Rubin chips are 3.5 times faster than Blackwell during AI model training and 5 times faster for inference applications. Nvidia’s data center business, therefore, still has remarkable room for growth.

Nvidia clocked a record $193.7 billion in data center revenue in fiscal 2026, up by 68% from the prior year. The $1 trillion guidance for the next couple of years points to a substantial increase in the segment’s revenue, which is why analysts project a faster 74% increase in its bottom line this year to $8.29 per share.

Importantly, Nvidia’s fiscal 2027 earnings estimate has been inching higher, a trend that could continue amid heavy investments in AI data centers.

The semiconductor stock’s retreat in 2026 doesn’t seem justified, given the points discussed above. As a result, Nvidia is trading at an attractive 21 times forward earnings, a slight premium to the S&P 500 index’s forward earnings multiple of 21. Nvidia, however, deserves to trade at a much higher premium to the S&P 500.

I say this because its earnings growth in the current fiscal year is poised to be more than 4 times the average 17% earnings growth that S&P 500 companies are expected to deliver. So don’t be surprised if this AI stock commands a premium multiple after a year.

Assuming Nvidia trades at 42 times earnings due to its eye-popping growth (double the S&P 500’s multiple), its stock could jump to $348 based on the $8.29 per share earnings estimate. That’s almost double its current price, which is why it would be a good idea to buy it before it steps on the gas.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Prediction: This Artificial Intelligence (AI) Stock Will Be Worth Twice as Much by the End of 2026 was originally published by The Motley Fool