By Keithen Drury
Publication Date: 2026-03-15 02:30:00
Nvidia (NVDA 1.58%) has made investors a ton of money over the past few years. If you invested $10,000 into it at the start of 2023, that investment is now worth $125,000. That’s an incredible return on investment. While Nvidia won’t be able to repeat that growth rate over the next three years, it has what it takes to outperform the market.
I think there’s one clear signal investors can’t ignore about Nvidia’s stock, and they should heed it and scoop up shares before the rest of the market catches on.
Image source: Nvidia.
The market only expects one more year of strong growth
Nvidia’s stock has somehow gotten the stigma that it’s expensive, but that couldn’t be further from the case. Right now, it trades at 22.1 times forward earnings, nearly the same price-to-earnings ratio as the S&P 500, which trades at 21.7 times forward earnings.
NVDA PE Ratio (Forward) data by YCharts
Normally, market-average premiums are reserved for stocks growing at a market-average pace, but that’s not Nvidia. In its last quarter, it grew revenue by 73%. For this quarter, management expects 77% growth. Normally, the market grows at about a 10% pace each year, so this is a massive mismatch.
The current price tag on Nvidia’s stock assumes that it will have a strong year, but will revert to market-average growth in 2027. But I don’t think that’s true.
Nvidia projects that global data center capital expenditures will reach $3 trillion to $4 trillion by 2030. McKinsey & Company offered a…