History Says the Nasdaq Will Soar in 2026. Here's the 1 AI Stock to Buy Before It Does.

The bull market has entered a third year with the S&P 500 and Nasdaq hitting record highs in 2025, driven largely by technology and AI exposure; historical data cited (average bull market >5 years and ~+191% gain) and a roughly 70% S&P rise over three years suggest room to run. The piece singles out Nvidia as the centerpiece of AI infrastructure — the dominant AI chip designer that produced triple‑digit revenue and net‑income growth in its latest full year and continued double‑/triple‑digit quarterly growth — with major customers (Microsoft, Alphabet) reporting surging compute demand and CEO Jensen Huang projecting up to $4 trillion in AI infrastructure spending over five years. Trading at roughly 38x forward earnings and after an approximate 1,000% gain over three years, Nvidia commands a premium but, given its platform leadership and annual innovation cadence, could lead the Nasdaq higher in 2026 if AI scaling persists; note the publisher discloses positions in Nvidia, Microsoft and Alphabet.

Analysis

The article frames the market backdrop as a third year bull run with the S&P 500 and Nasdaq hitting record highs in 2025 and notes historical research showing average post‑WWII bull markets last more than five years and gain roughly 191%; the S&P has climbed about 70% over the past three years, implying room for further upside. Market signals in the piece are moderately positive (sentiment_score 0.6) with a limited market impact score (0.35), suggesting bullish positioning but not a market‑moving shock.

Nvidia is identified as the key AI infrastructure play: the company is described as the world’s largest AI chip designer that posted triple‑digit revenue and net‑income growth in its latest fiscal year and continued double‑ and triple‑digit quarterly growth, while major customers (Microsoft, Alphabet) cited surging compute demand. CEO Jensen Huang’s $4 trillion five‑year AI infrastructure spending estimate and Nvidia’s central role in training and inference are presented as structural demand drivers that support sustained revenue growth.

Valuation and positioning risks are acknowledged: Nvidia has risen roughly 1,000% over three years and currently trades near 38x forward earnings, a premium that the article argues is justified by leadership but raises the bar for future returns. The publisher discloses positions in Nvidia, Microsoft and Alphabet and Stock Advisor notably did not include Nvidia in its latest top‑10 list, underlining the existence of differing analyst views and potential crowding in the name (per‑ticker NVDA sentiment 0.8).

Key Decisions for Investors

• Consider a tactical overweight to Nvidia for direct AI infrastructure exposure given its leadership and customer demand, but size new positions incrementally rather than all at once
• Limit position size or use protective hedges (e.g., put options or collars) due to Nvidia’s 1,000% three‑year run and 38x forward earnings which increase downside risk if growth disappoints
• Monitor quarterly revenue/earnings beats, customer capex commentary from Microsoft and Alphabet, and confirmation of Jensen Huang’s $4 trillion infrastructure pathway as primary catalysts to maintain or add exposure
• Conduct independent diligence given the publisher’s disclosed positions and mixed analyst signals (Stock Advisor omission), and be prepared to trim or hedge if sentiment becomes more crowded or if market breadth weakens