Looking beyond the headlines of wars and other global political turmoil, the US remains the world’s primary economic oasis. Meanwhile, in the stock market so far this year, there has been a flight to quality underway as nervous investors flee stocks due to a temporary case of “AI derangement syndrome,” writes Louis Navellier, founder and chairman of Navellier & Associates.
Jensen Huang, Nvidia Corp.’s (NVDA) charismatic founder and CEO, said Wall Street is mistaken to assume AI is bad for software stocks. He says the media continue to perpetuate AI fears, perhaps because they are worried about layoffs themselves if they don’t boost their ratings.
(Editor’s Note: Louis will be speaking at the 2026 MoneyShow Masters Symposium Hollywood Florida, set for April 9-11. Click HERE to register.)
Nvidia Corp. (NVDA)
This fear came to light when CNBC announced restructuring its newsroom to consolidate its TV and digital operations in a move resulting in some key layoffs, including the departure of the website’s managing editor, Jeff McCracken. Another example is the Washington Post recently laying-off a third of its workforce after losing $100 million in 2025.
Speaking of Nvidia, the company announced that fourth-quarter revenue rose 73.3% to $68.1 billion from $39.3 billion in the same quarter a year-ago. During the same period, the company’s operating earnings surged 97.8% to $42.9 billion, or $1.76 per share, from $22 billion, or 89 cents per share.
Excluding extraordinary items, Nvidia’s operating earnings were $1.62 per share. The analyst community was anticipating revenue of $66.1 billion and operating earnings of $1.54 per share. So, Nvidia posted a 3% revenue surprise and a 5.2% earnings surprise. More importantly, the company also raised its guidance for future sales and earnings above the analysts’ consensus estimates.
From here, I believe the stock should hit $300 by the end of 2026 and $500 by the end of the decade. So, back up the truck and keep buying Nvidia on dips.
Disclosure: Navellier & Associates owns NVDA in managed accounts. Louis Navellier and his family own NVDA in a personal account.
