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Nvidia: AI Engine Fuels Continued Growth

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  Published in Stocks and Investing on Friday, February 20th 2026 at 10:35 GMT by Forbes
      Locales: Delaware, California, Texas, Connecticut, UNITED STATES

By Amelia Hayes, Financial Currents

The global economic landscape remains a complex tapestry of opportunity and uncertainty as we enter late February 2026. Inflation, while moderating from peak levels, continues to influence monetary policy, and geopolitical tensions add another layer of volatility. Amidst this backdrop, identifying companies poised for sustained growth requires a discerning eye. This article expands upon recent analysis, looking beyond short-term gains to explore three stocks demonstrating the potential for long-term success: Nvidia (NVDA), Eli Lilly (LLY), and Booking Holdings (BKNG).

Nvidia (NVDA): The AI Engine Continues to Roar

The narrative surrounding Nvidia has been dominated by Artificial Intelligence, and that trend shows no signs of slowing. As of February 2026, Nvidia isn't simply a chip manufacturer; it's a foundational component of the evolving AI infrastructure. The demand for its GPUs extends far beyond gaming and data centers. We are witnessing a proliferation of AI-powered applications in fields like robotics, personalized medicine, financial modeling, and - critically - edge computing. The company's CUDA platform has established a powerful ecosystem, making it a natural choice for developers. Nvidia's recent investments in software and services, particularly around AI model training and deployment, are strategically important. This transition from hardware-centric to a more holistic platform provider offers higher margins and a recurring revenue stream.

However, the risks remain pertinent. Nvidia's premium valuation demands consistent execution. Increased competition from AMD, Intel, and emerging players like Cerebras Systems, while currently lagging, could erode market share. A significant downturn in global capital expenditure, especially in tech sectors, would also impact Nvidia's growth trajectory. Recent geopolitical concerns regarding chip manufacturing locations could also introduce supply chain risks. Despite these challenges, Nvidia's technological leadership and expanding addressable market suggest continued potential.

Eli Lilly (LLY): Beyond Diabetes and Obesity - A Pipeline of Innovation

Eli Lilly's success extends beyond its prominent presence in the diabetes and obesity treatment markets, driven by drugs like Mounjaro and Zepbound. While these blockbuster medications continue to generate significant revenue, the company's broader pipeline is the key to its long-term prospects. Lilly is making significant strides in Alzheimer's disease with promising clinical trial results for Donanemab, potentially offering a much-needed therapeutic option for millions. Furthermore, its oncology pipeline is diversifying, targeting multiple cancer types. The increasing global prevalence of chronic diseases, coupled with an aging population, creates a favorable demographic tailwind.

The pharmaceutical industry is inherently risky. Regulatory hurdles, patent cliffs, and clinical trial failures are constants. Generics and biosimilars pose a continuous threat to revenue streams. However, Lilly's robust R&D spending, strategic acquisitions, and focus on high-need areas position it well to navigate these challenges. The recent investment in manufacturing capacity reflects confidence in its pipeline and ability to meet future demand.

Booking Holdings (BKNG): Adapting to the Evolving Travel Landscape

Booking Holdings has proven remarkably adaptable throughout the fluctuations of the travel industry. The company has successfully transitioned from a simple hotel booking platform to a comprehensive travel ecosystem. This includes flights, rental cars, attractions, and increasingly, curated experiences. The company's investments in technology, such as AI-powered personalization and seamless mobile experiences, have significantly enhanced customer loyalty. The growing trend of "bleisure" travel (combining business and leisure) and the desire for unique travel experiences are creating new revenue opportunities.

The risks for Booking Holdings are tied to macro-economic conditions. Economic downturns, high inflation, and geopolitical instability can significantly curtail discretionary spending on travel. Competition from Airbnb and other alternative accommodation providers remains intense. However, Booking Holdings' scale, brand recognition, and extensive partnerships with hotels and airlines provide a significant competitive advantage. Their ability to leverage data analytics to optimize pricing and inventory management further strengthens their position. The company's expansion into emerging markets is another promising growth avenue.

Investing for the Future

These three companies represent a blend of established success and future potential. While no investment is without risk, these stocks offer exposure to key growth sectors - Artificial Intelligence, Healthcare, and Travel - that are poised to benefit from long-term trends. Remember, diversification is crucial, and investors should conduct their own due diligence before making any investment decisions. Consulting with a qualified financial advisor is always recommended.