Nvidia's AI Infrastructure Dominance Drives Continued Growth
Nvidia's (NASDAQ: NVDA) strong position in AI infrastructure has led some to question whether it can be considered a growth stock. However, experts remain optimistic about the company's future prospects.
One key factor driving Nvidia's success is its partnership with Taiwan Semiconductor Manufacturing (TSM), which produces 55% of its AI chip revenues using Nvidia technology. This strategic collaboration has enabled Nvidia to meet soaring demand for chips, particularly in China, where companies have placed orders for over 2 million H200 chips in 2026.
Nvidia's revenue growth has been impressive, with a top-line increase of 65% in 2026 and an estimated $215.94 billion in revenue for the year. The company's earnings per share (EPS) have also seen a significant uptrend, from $0.39 in FY2022 to $4.93 in FY2026.
The P/E multiple of Nvidia's stock has been rising, currently standing at 31.25x, which some consider undervalued given the company's strong growth prospects. Analysts predict that Nvidia's revenue will continue to soar, with an estimated $324 billion in revenue for FY2027, representing a YoY growth rate above 50%.