Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) remains the uncontested leader in the AI chip race despite rising competition from the likes of Alphabet’s Google, analysts at Wedbush believe.
“The AI Revolution starts and ends with Nvidia today, and that is not changing for another few years,” the analysts wrote, highlighting that Nvidia’s dominance in AI hardware remains firmly established despite the growing presence of Google’s TPU chips and other entrants.
They noted that while new players like AMD and Google are gaining traction, Nvidia’s Blackwell chip continues to drive unprecedented demand across both enterprise and cloud applications.
Wedbush also highlighted the outsized impact Nvidia has on the broader tech ecosystem. They project that for every $1 spent on Nvidia, there is an $8 to $10 multiplier across the rest of the tech ecosystem.
“With the trillions set to be spent over the coming years, many Big Tech players will benefit besides Nvidia on the chip front...that should not be mistaken for Nvidia being the indisputable Rocky Balboa champion of the AI Revolution, and that is not changing anytime soon on the chip front,” they wrote.
Last week, Nvidia reported strong growth numbers that exceeded Street estimates. Wedbush described the results as a “building crescendo moment for tech stocks,” noting that shares sold off slightly amid short-term market digestion and concerns about competition, regulatory challenges in China, and chatter around AI valuations.
The analysts remain bullish on the broader AI-driven tech cycle. They forecast that Big Tech capital expenditures could approach $550 billion to $600 billion in 2026, up from roughly $380 billion this year, as companies accelerate AI investments.
Wedbush singled out Palantir as a key barometer of enterprise AI adoption, citing its commercial growth as evidence that firms are expanding AI initiatives at pace.
“Nvidia’s bullish quarter, guidance, and commentary are a major focal point as a huge piece in the AI puzzle into 2026,” the analysts wrote, adding that field checks reinforce the view that the market is entering a transformative 1996-style growth phase rather than a 1999-style tech bubble.
Shares of Nvidia traded hands at $181 on Wednesday afternoon, up 35% so far this year.