Artificial intelligence has been the most important market theme for the past few years, and among the companies, Nvidia has embraced that shift the best. Over the entire AI hype period, its stock price has gone up by almost 1000%, which is why many investors think that the easy money has already been made.
However, this perception overlooks a greater reality that Nvidia’s influence in the AI market is not only growing, but 2026 could very well be the year when it enters the next growth phase instead of just ending the current one.
Nvidia’s Command on AI Infrastructure
The worldwide AI infrastructure spending is not slowing down, instead it is gaining momentum. The largest cloud service providers like Amazon Web Services, Microsoft Azure, and Google Cloud, might be investing in the development of specialized chips, but they are still very much relying on Nvidia’s GPUs for their massive AI workloads.
In fact, the recently signed multibillion-dollar contracts of $38 billion with OpenAI and $30 billion with Anthropic, are crucial examples of such reliance. These contracts are for a duration that exceeds 2026, and will ensure that Nvidia will be strategically placed at the heart of the global AI build-ups for a long time to come. So, as these data centers get operational, Nvidia will benefit steadily and quietly, as their major supplier.
Nvidia’s Role Behind Big Tech Deals
Nvidia is the silent partner in these alliances even though the reports usually talk more about the cloud vendors and the AI research teams. The company’s processors are not only utilized in training, but also in inference operations, which turns Nvidia into a provider of foundational layers in the AI ecosystem.
This scenario also puts Nvidia’s revenues and margins on the same rising path as those of the hyperscalers, which ultimately strengthens its dominance well into the next decade.
New Revenue Streams Could Reshape 2026
Nvidia is not only focusing on data centers, but is also preparing its future by building up the necessary infrastructure for growth. Strategic investments in the direction of Intel suggest custom CPUs and wider hardware integration, which may result in new partnerships with OEMs.
Meanwhile, the company’s stake in Nokia can be interpreted as a move into the AI-powered telecom networks, which is a domain that is not going to be commercially available until 2026 when the trials will start. Besides, Nvidia’s licensing and inference partnerships are indicating its transition from being a chip maker to having a more varied AI platform company.
Valuation Still Leaves Room for Upside
Nvidia’s huge valuation implies that the market might still be underestimating its growth even after the massive run. The stock is trading at a forward P/E multiple of 24.7, which is lower than most tech industry peers, however it looks more justifiable when considering the expected earnings growth.
Analysts are predicting that earnings will double over the next two years, and the PEG ratio is one of the indicators that Nvidia may be undervalued in comparison to its long-term potential. Nvidia’s PEG ratio at the moment is at 0.72, which is quite modest. Given the challenge of accurately predicting new AI plans, the current estimates might be considered as conservative.
Bottom Line
Nvidia’s narrative is now beyond GPU sales, and involves the establishment of an AI ecosystem covering data centers, networking, inference, and software. With a capital expenditure cycle lasting several years still in play and new verticals opening up, 2026 might become a turning point in Nvidia’s growth phase. For the investors who are willing to overlook previous gains and concentrate on structural growth, Nvidia continues to be a unique long-term AI opportunity.
