Nvidia's Stock Poised for October Surge

Nvidia's stock is poised for a potential surge in October, according to Keithen Drury of The Motley Fool. The chipmaker's growth projections for fiscal 2028 are substantial, with an expected 70% revenue increase.

This growth is largely driven by sales to AI hyperscalers, which are set to ramp up their spending on data centers in 2027. In fact, these companies are projected to spend nearly $800 billion on data center build-outs this year, and that number could rise to $1.3 trillion next year.

The market has not yet fully priced in this growth, with Nvidia's stock trading at a relatively cheap 28 times trailing earnings. However, using fiscal 2028 earnings projections, the stock's price-to-earnings ratio falls to an even more attractive 14.