NVDA Stock Today: December 26 — BofA Sees $1T Chip Sales by 2026
Nvidia stock price is in focus today after Bank of America projected global chip sales to top $1 trillion in 2026. The call centers on AI data centers, where Nvidia leads. Ticker NVDA recently traded near $188.61 with a 52-week range of $86.62 to $212.19. We look at levels, momentum, and valuation, plus what rising hyperscaler spending and custom chips may mean for returns. Our goal is to give investors clear, data-based takeaways they can use now.
What BofA’s $1T projection implies for Nvidia
Bank of America’s Vivek Arya sees global semiconductor revenue surpassing $1 trillion in 2026, with Nvidia among six leaders as AI workloads expand in data centers. The firm cites strong free cash flow supporting NVDA’s premium. It also references a forward PEG near 0.6, suggesting the growth rate may justify pricing. Nvidia stock price often tracks updates on hyperscaler capex and AI server demand.
Hyperscalers are increasing AI budgets while also exploring custom chips. This creates a mixed backdrop where accelerators, networking, and software matter. Nvidia’s platform strength in GPUs, NVLink, and AI Enterprise helps defend share. Still, investors should watch wins by suppliers like Broadcom and any pricing pressure. For more on the $1T view, see source.
Today’s setup: levels, momentum, and volume
Recent quote sits near $188.61, with day range $186.59 to $188.91 and 52-week range $86.62 to $212.19. Bollinger upper band is $191.58 and lower band is $171.10, framing likely volatility. Average true range is $5.67. Nvidia stock price staying above the 50-day average at $185.85 keeps the near-term uptrend intact for many traders.
RSI at 59.39 is neutral-to-firm. Stochastic at 96 suggests near overbought, while ADX at 13.29 indicates no strong trend yet. MACD histogram is positive at 1.70. Volume of 65.5 million trails the 189.9 million average, so breakouts may need higher participation. Traders will watch closes versus $185.85 and $191.58 for confirmation.
Valuation check and Wall Street targets
NVDA trades near a 47.16 P/E. Free cash flow yield is about 1.66% and debt-to-equity is 0.09, showing a strong balance sheet. Margins remain high, with net margin above 53%. Nvidia stock price reflects leadership and growth, but execution on data center demand must stay strong to support multiples as spending cycles shift.
Coverage skews positive: 56 Buys, 2 Strong Buys, 1 Hold, 1 Sell. Consensus target is $234.73, with a high of $352 and a low of $140. Next earnings is listed for February 25, 2026. For peer context on 2026 AI leaders, see source.
What to watch in 2026: capex returns and supply dynamics
Cloud providers are boosting AI capex, but investors need proof of returns in search, ads, cloud services, and software. Watch unit shipments, lead times, and pricing. Nvidia stock price may react to updates on inference adoption, software attach, and networking upgrades that drive total platform revenue, not just accelerators.
As hyperscalers expand custom silicon, the mix between merchant accelerators and in-house designs will evolve. Key tells include design wins, software compatibility, and total cost of ownership. Nvidia’s broad stack can offset share swings, but any major custom ramp could influence margins and growth. Track announcements from large cloud buyers each quarter.
Final Thoughts
The headline today is BofA’s call for $1 trillion in chip sales by 2026 and what that can mean for Nvidia. For traders, watch the 50-day average near $185.85, Bollinger upper band at $191.58, and volume confirmation on any move. For investors, the blend of high margins, strong cash generation, and a healthy balance sheet supports the story, while custom silicon is the key risk to monitor. Nvidia stock price often follows hyperscaler capex updates, software attach trends, and networking wins. Set alerts for guidance changes, track analyst target revisions, and review capex commentary from major cloud buyers. A measured plan with position sizing and clear stop levels can keep risk in check.
FAQs
BofA sees global chips topping $1 trillion in 2026, driven by AI demand. Nvidia is a leading supplier to AI data centers. When big banks raise industry estimates, investors often reprice leaders. The focus is on sustained AI server orders, software attach, and returns on hyperscaler spending.
It depends on growth durability. High margins, strong free cash flow, and low net debt help. Bulls cite AI leadership and platform breadth. Bears worry about custom silicon and pricing. Compare P/E to growth and watch free cash flow yield as orders and pricing move through the cycle.
Watch the 50-day average around $185.85 and Bollinger upper band near $191.58. RSI near 59 is neutral-to-firm, and Stochastic near 96 looks stretched. A close above $191.58 with rising volume could signal momentum. A sustained break below $185.85 would weaken the near-term setup.
Custom chips can limit unit share or pressure pricing, but they also validate AI demand. Nvidia offsets this with a full stack of GPUs, networking, and software. Track design wins, software compatibility, and total cost of ownership data points from large cloud providers each quarter.
Clear signals of ROI from AI deployments, strong inference adoption, and software attach could help. Upside also needs steady unit shipments and networking strength. Catalysts include earnings guidance, major cloud orders, and new product roadmaps that support performance gains and lower total cost per workload.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
