Nvidia Stock Has Underperformed in 2026. Billionaire Hedge Funds Are Still Gobbling It Up.

Semiconductor industry behemoth Nvidia Corporation (NVDA) has delivered solid gains of almost 20% this year. However, investors seem to have higher expectations for the company, given its track record and the fact that one of its rivals in the AI space, Advanced Micro Devices (AMD), has gained 96.7% this year.

However, this fact did not stop Chase Coleman’s Tiger Global, one of the most closely watched hedge funds, from increasing its Nvidia holdings by one million shares, from 11,011,752 to 12,011,752. Such robust institutional buying could raise investor confidence and drive the stock higher.

More News from Barchart

• Dear Sandisk Stock Fans, Mark Your Calendars for May 20

• NVDA Earnings Bull Put Spread has a High Probability of Success

• How Beaten-Down Tempus AI Stock Offers a Lottery Ticket for Traders Here

• Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.

Nvidia is facing exponential demand for computing, especially in a rapidly evolving space driven by the growing popularity of agentic AI. The company remains central to this growing phenomenon, as its chipsets remain highly coveted. Its Grace Blackwell platform and NVLink offering have become central to inference. Its Vera Rubin platform is set to join this list, as AI agents continue to be rapidly adopted.

We take a closer look at Nvidia now before the company’s Q1 earnings.

About Nvidia Stock

Nvidia has emerged as the world’s most valuable company, driven by its dominance in artificial intelligence and high‑performance computing. The firm’s powerful GPUs and AI platforms power data centers, cloud services, and cutting‑edge applications, making it a central player in the global technology landscape and the engine behind the ongoing AI revolution. The company commands a massive market capitalization of $5.38 trillion.

Unrelenting AI demand is still creating tailwinds for Nvidia’s stock. Explosive demand for Nvidia's GPUs is driving a huge surge in data center operations. As the company’s dominance persists, over the past 52 weeks, the stock has gained 64.73%, while it has been up 19.74% year-to-date (YTD). Powered by the strong demand for AI infrastructure and as compute supply remains constrained, NVDA’s stock reached an all-time high of $236.54 on May 14, but is down 5.78% from that level.

On a forward basis, NVDA’s price-to-earnings (non-GAAP) ratio of 28.75 times is 18% higher than the 24.36 times industry average.

Nvidia Q4 Earnings Beat as AI Demand Fuels Record Revenue

For the fourth quarter of fiscal 2026 (quarter ended Jan. 25), Nvidia reported a record quarterly revenue of $68.13 billion, up 73% year-over-year (YOY), which was also higher than the $66.21 billion that Wall Street analysts (as polled by LSEG) had expected. The company’s Q4 data center revenue reached a record $62.30 billion, up 75% from the year-ago period. This clearly shows that Nvidia is now earning about 91% of its top line from data center operations.