Undervalued Nvidia Poised for 70% Growth in 2027
Nvidia is the largest company in the world and a top pick for artificial intelligence (AI) stocks, according to recent analysis. The company's GPUs have been the top computing option for nearly every application, making them a universal computing unit that nearly every product is compared against.
The new Rubin generation of chips will make an even greater impact than prior iterations, providing more advanced capabilities and allowing Nvidia to charge a higher price tag. This built-in revenue escalator is set to launch shortly and is expected to have a major impact on Nvidia's growth rate.
Nvidia's management has revealed that it expects a 70% growth rate for fiscal year 2028, ending in January 2028 and encompassing nearly all of 2027. However, given the company's track record of outperforming internal expectations, some investors may be cautiously optimistic about this prediction.
Nvidia trades at 24.6 times forward earnings, which is a relatively low price historically for the company. This pricing mismatch presents an incredible investment opportunity, as the market is pricing in almost no growth in Nvidia's stock right now for 2027.