Major Bank Ratings | Wolfe: Nvidia is the Best AI Investment Target for 2026, Still Has Upside Potential

Glonghui January 14th｜Wolfe Research published a report, naming Nvidia as its top artificial intelligence (AI) stock pick for 2026, replacing Micron on its preferred Wolfe Alpha List. The firm believes Nvidia’s relatively underwhelming performance has left room for further gains. Analysts pointed out that Nvidia’s lagging stock price is mainly due to three factors: the late launch of the Blackwell architecture, doubts about whether overall AI spending can be sustained, and concerns that its market share could be eroded by customized AI solutions. However, Wolfe believes that as Nvidia’s product roadmap continues to advance, these concerns are gradually dissipating. Wolfe noted that Nvidia’s recent outlook indicates that 2026 revenue could be at least $40 billion higher than market consensus. If shipments of the H200 chip to China resume, this will provide additional revenue upside. The firm emphasized that Nvidia’s pricing power is improving, and stated that it was positively surprised by the pricing of Blackwell Ultra and Rubin, seeing this as clear evidence of Nvidia’s competitive moat.