Nvidia shares continue to hold the title of 'retail favorite' even though they underperform in 2026

Nvidia Remains a Top Pick Among Retail Investors

Despite a modest start to the year, individual investors continue to favor a stock that has delivered significant returns in recent years.

The company in question is Nvidia, a leader in AI chip technology.

According to recent figures from Vanda Research, Nvidia attracted $706 million in net retail inflows over the past week. This trend indicates that many retail investors still consider Nvidia a foundational part of their investment portfolios.

Vanda Research described Nvidia as the "unquestioned leader among retail investors."

Performance of the 'Magnificent Seven'

So far this year, Nvidia shares have slipped by 1.2%, underperforming the S&P 500, which has posted a slight gain. Of the so-called "Magnificent Seven" tech stocks, only Alphabet and Amazon have seen positive returns in 2026, rising 7% and 2.55% respectively.

Jensen Huang Highlights AI Opportunities

Nvidia CEO Jensen Huang made a strong impression during his first appearance at the World Economic Forum on Wednesday.

Wearing his signature black leather jacket, Huang spoke about a surge in demand for skilled trade workers and the availability of six-figure salaries for those building AI infrastructure.

"Everyone should have the chance to earn a great living," Huang remarked. He also predicted that the current AI boom would drive the largest infrastructure expansion in history, involving investments worth trillions of dollars.

Huang also dismissed concerns about a potential AI bubble, explaining that such fears stem from the sheer scale of investment, while the actual opportunities are "truly remarkable." Nvidia's stock ended the day near its session highs, climbing 2.95%.

Looking Ahead: Nvidia's Upcoming Earnings

The next major event for Nvidia and its retail supporters is the company's quarterly earnings report, scheduled for February 25.

Citi analyst Atif Malik remains optimistic about Nvidia's prospects ahead of the report.

"Demand for computing and networking to support next-generation AI models is accelerating, which should benefit both Broadcom and Nvidia—two core AI holdings. At CES, Nvidia highlighted increased data center demand, and last week, Taiwan Semiconductor raised its 2026 sales and capital expenditure growth targets," Malik noted.