Nvidia Stock Price Forecast: Can it Keep Rising?
Nvidia's stock has been on an impressive run since ChatGPT emerged in 2022, rising by 1,600% and catapulting it to the top of the market.
The company has maintained its dominance despite several challenges, and although it faltered earlier this year, it has regained momentum, with a 24% gain so far this year.
Nvidia's latest earnings report in August was phenomenal, sending the stock even higher. Revenue increased by 106% compared to last year in the fiscal 2027 second quarter, and management is guiding for a 90% rise in revenue in the third quarter.
CFO Colette Kress noted that it's a 'supply constrained outlook,' with top hyperscalers expected to spend $800 billion this year and $1.3 trillion next year, with Nvidia set to secure a substantial portion of these funds.
The stock is currently trading at 19 times trailing-12-month sales and 29 times trailing-12-month earnings, which are near multiyear lows, indicating that the market may not be willing to pay as much for Nvidia's stock due to increased competition and the company's growing size.