Nvidia Stock Set for 240% Gain by 2030 Predicts The Motley Fool Analyst

Nvidia's stock price has been underwhelming investors despite its impressive quarterly earnings announcements. Over the past year, the company's share price has dropped after each announcement, but it has still managed to grow by 25%.

According to John Bromels of The Motley Fool, Nvidia's trailing P/S ratio is currently at 17.8, well below its five-year average of 25.4. He believes that once the AI spending boom becomes clear and Nvidia's valuation moves closer to its historical average, the stock price could rise.

Bromels cites Nvidia CEO Jensen Huang's prediction that revenue will jump 70% in fiscal 2028, with further gains in future years. Using this as a basis, he predicts that five shares of Nvidia would be worth at least $2,681.41 by 2030 if the share price reaches its historical average.

However, it's essential to consider the potential setbacks and fears of an AI bubble when making investment decisions. Before buying stock in Nvidia, investors should weigh their options carefully.