Slow 2026 Starts Present Opportunities: AAPL, NVDA

It’s no secret that stocks have been volatile over recent weeks, mostly fueled by geopolitical concerns. Tech stocks have been hit pretty hard, with investors likely cashing in some gains on the back of uncertainty following big runs over recent years.

But weakness generally presents nice opportunities for investors, especially among stocks enjoying positive earnings estimate revisions like NVIDIA NVDA and Apple AAPL. Both stocks have gotten off to a slow start so far in 2026, but revisions remain bullish on each.

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NVIDIA Momentum Stalls

We’ve all become highly familiar with NVIDIA’s story over recent years, overall reflecting the poster-child for the AI trade thanks to its chips that are powering a huge part of the infrastructure buildout. It again posted robust growth in its latest release, with adjusted EPS of $1.62 growing 82% year-over-year alongside record sales of $68.1 billion that grew 73% from the year-ago period.  

NVIDIA’s sales growth has been historic over recent years, as shown below.

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As expected, Data Center results throughout the period showed that everybody still wants their hands on the magical chips. Data Center sales of $62.3 billion again reflected a record, up 75% year-over-year and 22% sequentially.

Importantly, EPS revisions for its current and next fiscal year continue to show bullishness, a key factor concerning its share performance. While shares have undoubtedly slowed down relative to what we’ve seen over recent years, the reality remains that the company’s outlook remains robust. The stock remains a Zacks Rank #2 (Buy).

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Further, the company is largely unmatched as the backbone of the AI infrastructure buildout. Companies are still looking to spend heavily on chips, underpinned by ever-rising CapEx forecasts we keep seeing from those building out their data centers.

Shares are still cheap on a relative basis, with the current 0.5X PEG ratio reflective of both value and growth. Its cash-generating abilities have also been amplified amid the favorable environment, as shown below.

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Apple Remains Rock-Solid

Apple also continued to fire on all cylinders in its latest release, with the company posting records across revenue, adjusted EPS, iPhone sales, and Services revenue. Sales of $143.8 billion grew 16% year-over-year, whereas adjusted EPS of $2.84 was up 19% from the year-ago period.

The 16% YoY sales growth rate reported is quite notable, reflecting the strongest top line performance we’ve seen from the tech giant in years. Below is a chart illustrating the company’s sales on a quarterly basis.

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With Apple, the focus largely remains on iPhone performance, though Services has quickly become another key part of its business and growth outlook as well. Regarding iPhone results in the latest reported period, it posted all-time records across all geographic segments, with sales totaling $85.3 billion.

Apple’s cash-generating abilities have always been a critical part of investor sentiment surrounding the stock, long recognized as a cash flow ‘king’. The strong cash-generating abilities have allowed shares to trade at a premium, with its dividend-paying abilities pleasing investors looking to obtain top-tier tech exposure paired with paydays.

Below is a chart illustrating the company’s free cash flow on a quarterly basis.

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EPS revisions for its current and next fiscal year have turned around entirely since last April, overall reflecting a bullish picture from a share performance standpoint. While it’s undeniable that the company isn’t the high-growth flyer that it used to be, concrete fundamentals and rock-solid demand from consumers for its devices and services keep Apple a top-tier investment option.

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Putting Everything Together

Both NVIDIA NVDA and Apple AAPL have gotten off to sluggish starts in 2026, but the reality remains that both companies remain top-tier picks, underpinned by robust cash-generating abilities, favorable EPS revisions, and rock-solid demand outlooks.

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This article originally published on Zacks Investment Research (zacks.com).

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