Wolfe Research has reiterated its Outperform rating for Nvidia Corporation (NASDAQ: NVDA), adding the AI chip maker to its Wolfe Alpha List and replacing Micron. Analyst Chris Caso noted this move positions Nvidia as the firm's favorite idea for 2026.
The decision comes despite the stock being "up 'only' 36% over the past year," which Wolfe said trails other AI-linked names. Caso explained, "NVDA is up 'only' 36% over the past year, underperforming other AI related names. We think the reason for underperformance is threefold — the late launch of Blackwell, concerns about the sustainability of AI spending in general, as well as concerns about share losses to custom AI solutions."
However, with Nvidia's product roadmap advancing, these worries are now fading. Wolfe wrote, "Blackwell is now ramping fully, and Rubin is on time for 2H26 ramp," adding that Rubin offers "5x inference improvement vs. Blackwell."
The stock's recent outlook points to "at least $40bn upside to CY26 consensus revenue," with resumed H200 shipments to China potentially leading to further upside.