Prediction: This Unloved AI Stock Has What it Takes to Outrun NVIDIA

It’s hard to tell what can get those stalled shares of Nvidia (NASDAQ:NVDA | NVDA Price Prediction) going again. There’s still a lot of growth and innovation going on underneath the hood. Combined with the Vera Rubin catalyst and the rise of agentic AI, as well as more monetizable vertical AI, it feels like Nvidia stock doesn’t deserve to be grounded as some of the other AI plays continue marching higher.

Of course, much of mega-cap tech seems to be in a correction or bear market. And until investors feel confident again (perhaps next earnings season will be good enough to do it?), it’s impossible to tell what’s up next for Nvidia stock. If the sideways channel lasts until the summer, I’d treat the lack of action as a correction in itself, especially as the price-to-earnings (P/E) ratio looks to compress further.

Nvidia stock is already getting cheaper and cheaper with every quarter that goes by without a sustained rally. As Nvidia stays on the tarmac, I think it’s time to set sights on other AI stocks that might have what it takes to outperform for the year ahead. Here’s one name that I think could beat Nvidia stock in terms of returns for 2026:

Alphabet

Even after a nice bounce, shares of Alphabet (NASDAQ:GOOG) are still down around 12% from their all-time highs. Google Gemini is still an AI share-taker, and as the firm continues rolling out new tools that might just accelerate the transition going on in the software industry, investors have every reason to stick with the name. In many ways, Alphabet is an AI leader, one with catalysts that are timelier than almost any other innovator that’s going heavy on the rise of agentic AI. 

In recent weeks, much buzz has surrounded one-person companies that are effectively leveraging AI and agents to generate considerable revenue. With Google CEO Sundar Pichai remarking on the “AI shift” in the startup scene, I do think that there’s a lot of gain to be had, not just with the heavy-spending hyperscalers or the fast-moving frontier AI startups, but with the wave of AI-native firms that nobody has heard of.

In any case, Google is on the right side of the wave, as the firm continues to invest in all the right areas. Of course, time will tell when investors are ready to shed their fears of big CapEx bills in big tech. Regardless, the best deals might only stick around while the rest of the crowd isn’t as willing to buy big tech on the dip.

This bull thinks a move to $390 could be in the cards

BNP Paribas seems to think that the selling is “overdone” and sees the name as having what it takes to hit $390 per share from here. That’s a gain of nearly 29%.

I think they’re right to be bullish at a time of excess bearishness. After all, Alphabet stock goes for 28.1 times trailing P/E, which is very modest when you consider where Google stands in this AI race. Arguably, they’re in the first spot, and they’re in a very good position to maintain their lead, at least in my view, under the leadership of Sundar Pichai.

With Waymo continuing to roll out in new cities while Gemini adds new applications (new mental health support features look intriguing), I’d argue that it makes little sense for Alphabet stock to stay stuck in a correction for as long as Nvidia. There are way too many drivers, and the valuation, I think, is low enough such that the name is the best deal of the Mag Seven once again.