Nvidia's Growth Momentum Expected to Continue Beyond Q2

Nvidia's recent earnings report showed impressive growth, exceeding analysts' expectations. The company reported a 106% year-over-year increase in revenue to $96.2 billion and non-GAAP earnings of $2.22 per share, trouncing estimates.

According to CFO Colette Kress, Nvidia expects to grow revenue by approximately 70% in fiscal 2028, which is higher than analysts' forecasts. This growth potential could be further boosted if the company can increase its manufacturing capacity with its supply chain partners.

The aggressive expansion of Taiwan Semiconductor Manufacturing (TSMC), Nvidia's foundry partner, also bodes well for the company. TSMC has increased its 2026 capital expenditure guidance by $8 billion and committed to spend another $100 billion in the U.S., which could lead to stronger growth for Nvidia.

Nvidia trades at a relatively low valuation multiple of 29 times earnings compared to the tech-focused Nasdaq-100 index's multiple of 34. Analysts anticipate a significant increase in Nvidia's earnings, potentially reaching $9.29 per share in fiscal 2027, which could lead to a higher stock price.