Gene Munster Warns Wall Street Is Underestimating 2026 AI Demand As Nvidia And TSMC Signal Strong Upside

On Thursday, Deepwater Asset Management's managing spouse Gene Munster said caller signals from Nvidia Corp (NASDAQ:NVDA) and its cardinal spot supplier suggest artificial quality maturation is accelerating into 2026, not slowing.

Munster took X and said that cardinal indicators constituent to stronger-than-expected AI fundamentals this year, prompting him to forecast Nvidia gross maturation of much than 65% twelvemonth implicit twelvemonth successful 2026, good supra Wall Street's astir 50% consensus.

"Bottom line: AI infrastructure maturation successful 2026 is apt to transcend expectations," Munster wrote connected X, calling existent signals "2-for-2" successful favour of continued momentum.

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Munster pointed to Nvidia's absorption commentary astatine CES, saying executives appeared assured that request for AI infrastructure could outpace existent expert models.

He noted that the code from Nvidia enactment suggested upside to statement maturation forecasts, reinforcing the presumption that endeavor and information halfway AI spending remains robust.

Munster besides cited Taiwan Semiconductor Manufacturing Co.'s  (NYSE:TSM) latest guidance arsenic a cardinal confirmation signal. TSMC projected first-quarter 2026 gross successful the scope of $34.6 cardinal to $35.8 billion, comfortably supra Wall Street expectations of astir $33.2 billion.

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TSMC shares gained 4.44% during Thursday's regular league and an further 0.47% successful after-hours trading. Meanwhile, Nvidia was up 2.10% during the regular league and accrued by 0.39% successful after-hours.

"Nvidia is up connected the read-through," Munster said, adding that the results connote TSMC gross could turn astir 40% twelvemonth implicit twelvemonth successful the March 2026 quarter.

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TSMC delivered a decisive fourth-quarter beat, exceeding expectations connected margins, net and outlook. Gross borderline climbed to 62.3%, topping the 60.6% statement estimate, portion net per stock roseate to $3.09, good up of forecasts of $2.90.