Nvidia Stock Set for Explosive Growth Through 2028

Nvidia's stock price may seem high at first glance, but its valuation is actually relatively modest compared to its historical levels, considering its extraordinary growth.

The company's current valuation multiple is near multiyear lows, and its earnings and AI dominance are still compounding at rates that make today's price look reasonable.

Nvidia generated over $250 billion in total revenue in its most recent fiscal year, up roughly 65% year-over-year, with data center GPUs responsible for the overwhelming majority of the business.

Analysts see revenue reaching about $390 billion in 2027 and more than $550 billion in 2028, with annual sales growth of roughly 24% to 25%, according to management's outlook.