Nvidia faces setbacks at the start of 2026; Wall Street remains divided over its $6 trillion market cap target

Glonghui Jan 6｜As the company with the highest market capitalization in the world, Nvidia (NVDA.US) did not have a stable start to the stock market in 2026. Since hitting an all-time high on October 29, Nvidia's share price has dropped by 9.1%, significantly underperforming the S&P 500 Index. The reason is that investors are increasingly concerned about the sustainability of AI spending and the chip giant's control over the market. "The risks have clearly risen," said JoAnne Feeney, Partner and Portfolio Manager at Advisors Capital Management, which manages $1.3 billion in assets. Nvidia's sluggishness will affect most stock investors. Nevertheless, demand for Nvidia's stock remains strong, and despite very high earnings expectations, its valuation is still lower than many other large tech peers. The Santa Clara, California-based company expects sales to grow 53% and profits to grow 57% in the next fiscal year ending January 2027. In contrast, both of these metrics for Apple are expected to grow by around 10%. Wall Street has not abandoned Nvidia either. Of the 82 analysts tracking the company, 76 have a "buy" rating and only one suggests selling. The average target price on Wall Street implies a 37% upside over the next 12 months, which would push its market capitalization past $6 trillion.