Nvidia Stock Nears All-Time High Despite Earnings Volatility

Nvidia shares have shown remarkable resilience, even when they initially dipped following four of their last five earnings reports. Despite these setbacks, the stock came within just one cent of hitting an all-time high on a recent Friday. Five years ago, Nvidia closed at $20.45, and analysts now project earnings of $21.09 per share for fiscal 2028.

The company's performance has been impressive, with a 25% gain so far in 2026, doubling the market's return. Over the past three years, Nvidia shares have increased fivefold, and over five years, they've risen elevenfold. The stock's chart over the past five quarters reveals a pattern where it initially drops after earnings reports but recovers and surpasses previous highs by the next report.

Nvidia's dominance in AI infrastructure is driving strong revenue growth, with year-over-year increases of 56%, 63%, 73%, 85%, and 106% over the past five quarters. The company has also consistently beaten profit targets, with normalized net margins exceeding 40%. CEO Jensen Huang's confidence in the stock's value is evident in the board's authorization of a $150 billion share repurchase program.

Analysts expect Nvidia to trade at 15 times next year's earnings and less than 11 times next year's bottom-line forecast. The company's long-term growth trajectory suggests that investing in Nvidia five years ago would have cost less than what it is projected to earn in a single year by 2028.