Nvidia Stock Priced for a Quiet Move Ahead of Fiscal 2028
Nvidia's stock performance has been steady but unspectacular this year, gaining only 17.3% despite its history of rapid growth during earlier phases of the artificial intelligence revolution.
The company's growth is constrained by supply chain bottlenecks and component shortages, rather than a lack of demand for its graphics processing units (GPUs).
Nvidia has given a full-year-ahead forecast of 70% revenue growth, significantly higher than Wall Street's estimates. This is considered a conservative estimate, as the company believes it can deliver more if supply chain constraints are alleviated.
The top five hyperscalers (Amazon, Alphabet, Microsoft, Meta Platforms, and Oracle) are projected to spend $1.3 trillion on capital expenditures in 2027, which Nvidia expects to capitalize on with its new Vera Rubin platform.