Nvidia Poised for Massive Growth as Predicted Revenue Increase Ignites Buying Opportunity

Nvidia's stock has been undervalued for some time now, according to one analyst. The company is poised for massive growth in 2027, with a predicted 70% revenue increase by fiscal year 2028. This growth rate is not yet reflected in the current stock price.

Nvidia typically trades at around 40 times forward earnings, but its current price of 24.6 times forward earnings makes it relatively cheap compared to historical levels. The S&P 500 trades for about 20 times forward earnings. If investors were to factor in the predicted growth rate, the stock would be even cheaper.

The new Rubin generation of Nvidia's chips is expected to have a major impact on the company's growth rate. These chips will provide more advanced capabilities than prior generations and come with a higher price tag, giving Nvidia a built-in revenue escalator.