Most stocks have faced a turbulent year thus far in 2026. Although the Iran war is the main culprit, even before the war, large tech and artificial intelligence stocks faced concerns about high valuations and other factors that weighed on their respective businesses.
The market has bounced back significantly in recent weeks and hit all-time highs, and analysts still see substantial upside ahead for some of the most popular large tech and AI stocks, such as Nvidia (NVDA +5.93%) and Netflix (NFLX +0.34%).
Wall Street says this one will make you richer during the next 12 months.
Image source: Nvidia.
Nvidia: The Vera Rubin platform could be huge
Nvidia has rebounded this year, and its stock is now up roughly 12% (as of April 24). The company reported blowout earnings in its fiscal 2026 fourth quarter earlier this year, with results and a forecast for the current quarter well ahead of Wall Street estimates.
Furthermore, the company provided promising updates. Chief Executive Officer Jensen Huang said he expects $1 trillion of sales between its Blackwell and Vera Rubin platforms between March of this year and the end of 2027.
Huang also said that the company has been preparing to restart chip sales to China, a potentially meaningful market for the company, although there are yet to be any official sales as of this writing.
Nvidia and other AI stocks have faced headwinds amid investor concern about elevated valuations, intense capital expenditures on AI infrastructure, and questions about the returns on these investments. The sheer size of Nvidia, with a roughly $5 trillion market cap, is also daunting to some investors.
NASDAQ: NVDA
Key Data Points
Wall Street analysts are bullish on the company. Of the 43 analysts who have issued research reports during the past three months, 41 have a buy rating on the stock, according to TipRanks. The average price target implies 35% upside from current levels, while the Street-high target of $380 implies 88% upside.
Bernstein analyst David Dai recently reiterated his buy rating on the company and issued a $300 price target. Dai say the new Vera Rubin platform will be a "monster" with "5x more inference performance and 3.5x more training performance" than Nvidia's current platforms.
Dai sees this as particularly impressive, since Vera Rubin was built with only 1.6 times more transistors, the fundamental building blocks of chips.
Although I do think AI concerns are real, it's difficult for me to be bearish on Nvidia for the next year, considering Huang's confidence about sales, strong reports on the Vera Rubin platform, and Nvidia's fairly reasonable valuation of about 24.5 times forward earnings.
Netflix: Ignore the noise and buy the dip
Netflix has also had a busy year for several reasons. The company got involved in a highly publicized bidding war for certain assets owned by Warner Bros. Discovery, including HBO Max and its film and television studios.
Netflix had agreed to a deal with Warner Bros., but Paramount Skydance aggressively countered until the deal became too good for Warner Bros. to pass up. Netflix chose to walk away and received a $2.8 billion breakup fee, but the whole saga turned into a bit of a distraction.
It also became clear that investors had no desire to see Netflix stray from its organic growth strategy.
Netflix stock had bounced back a good deal, but ran into more trouble at the company's recent earnings report. After just implementing subscription price hikes across all its tiers, Netflix did not raise its full-year revenue outlook, and its current-quarter projection also came in soft.
Board Chair and co-founder Reed Hastings also announced his departure from the company.
NASDAQ: NFLX
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Still, Wall Street is not fazed. Of the 35 analysts who have issued research reports during the past three months, 29 have a buy rating on the stock, and six have a hold rating, according to TipRanks. The average price target implies 24% upside from current levels, while the Street-high target of $135 implies 47% upside.
Recent analyst reports after earnings recommend buying the dip. Netflix continues to execute well, with its dominance in the streaming industry and high engagement metrics driving strong pricing power. Despite subscription increases in 2025 and this year, subscriber growth has been strong.
Overall, Wall Street believes that Nvidia stock will make you richer over the next year. But I still like Netflix, given its extremely strong tech-powered model that doesn't appear overly reliant on AI. However, AI is still an important component of its business, so it can benefit from this groundbreaking technology as well.
