Stocks
Nvidia on Track to Surge by 2028 Despite Current P/E Ratio
Nvidia is a top stock to consider for beginner investors due to its strong growth prospects and relatively low price-to-earnings ratio.
The company's P/E ratio is currently at 29, which is slightly higher than the S&P 500's P/E ratio of 25. However, Nvidia's revenue growth rate is expected to be much faster than the S&P 500 this year and next year.
Wall Street expects Nvidia to grow revenue by 91% this year and 66% next year, with earnings per share forecasted at $15.68 for fiscal 2028. Based on this forecast, the stock trades at a forward P/E of 14.6.
Nvidia's position in the AI boom has made it a key player in the industry, and its chips are used by top AI labs and cloud computing platforms to run AI applications.