Nvidia Stock Poised to Surge as AI Hyperscalers Reveal Growth Projections
Nvidia's stock has been steadily rising this year, up about 21% so far. But investors are used to greater returns from the chipmaker.
The market still hasn't priced in Nvidia's massive expected growth in 2027, which could start to change as AI hyperscalers release their capital expenditure projections for next year.
Nvidia has already issued guidance on its own expectations, with a projected revenue growth of 70% during fiscal 2028. The company expects sales to AI hyperscalers to drive this forecast, as these companies are expected to ramp up spending on data centers again in 2027.
The five major AI hyperscalers are projected to spend nearly $800 billion on data center build-outs this year, and their capex is estimated to rise to $1.3 trillion next year, according to Nvidia's projections.
Nvidia's stock is currently priced at an attractive 28 times trailing earnings, but considering the company's expected growth, a fair valuation could be around 30 times earnings.