The 1 Thing Nvidia Bears Keep Getting Wrong in 2026
Key Points
Nvidia has visibility in up to $1 trillion in AI infrastructure demand through 2027.
AI compute demand has increased dramatically due to the increasing adoption of reasoning models and AI agents.
Nvidia has also built a diversified customer base.
- 10 stocks we like better than Nvidia ›
Shares of Nvidia (NASDAQ: NVDA) are trading down by 10.2% so far in 2026, despite the company reporting a 65% year-over-year jump in revenue to $215.9 billion in fiscal 2026 (ending Jan. 25, 2026). Some investors are now questioning whether the current level of artificial intelligence (AI) infrastructure spending, which is driving the company's growth, can be sustained over time.
However, those concerns are based on one flawed assumption.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
AI infrastructure demand is a multiyear trend
Nvidia bears continue to treat current AI spending as a short-term surge led by hyperscalers. They point to the company's slowing sequential revenue growth, rising competitive pressures, higher customer concentration, and increasing geopolitical risks as signs that demand could normalize.
However, the reality is more nuanced. While these concerns are valid, Nvidia remains a key enabler of the global AI infrastructure buildout. At its GTC AI Conference 2026 keynote address, CEO Jensen Huang announced that Nvidia now sees at least $1 trillion worth of demand for its AI systems in 2026 and 2027, up from roughly $500 billion of visible demand the company had for its Blackwell and Rubin systems through 2026 a year ago.
The increasing adoption of AI reasoning models and AI agents has dramatically increased compute requirements. Nvidia estimates that AI compute demand increased by as much as 1 million times in the past two years.
Demand for compute is also expanding across industries and functions. Hyperscalers account for about 60% of Nvidia's business, while the remaining 40% comes from enterprises, sovereign AI projects, start-ups, and new use cases such as robotics and edge AI. The diversified customer base ensures that Nvidia is not overly dependent on any single industry or company.
Nvidia also benefits from a steady stream of new product launches. Hopper deployments are still ongoing, and Blackwell systems are ramping. The company's future platforms, such as Rubin and Feynman, are already in development.
Finally, Nvidia's price/earnings-to-growth (PEG) ratio is just 0.41, indicating that its earnings are growing faster than its share price.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,026,987!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 31, 2026.
Manali Pradhan, CFA 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.
Recommended Articles
