By Keithen Drury
Publication Date: 2026-10-16 22:44:00
Nvidia (NVDA -1.43%) may be the world’s largest company by market cap, but that doesn’t mean that its sales and earnings can’t get bigger. However, if you look at how the stock market is valuing the company, then it’s pretty obvious that the market thinks they won’t.
This gap is a major investment opportunity, because if you know which metrics to look at, you can easily discern that Nvidia should soar over the next year. That makes it one of the top stocks to buy now.
Image source: The Motley Fool.
The market isn’t baking in any of 2027’s growth
The metric I’m focusing on here is next year’s forward price-to-earnings (P/E) ratio. For a rapidly growing company like Nvidia, this makes a lot of sense. Though it’s based on estimates, this metric is actually fairly solid, as Nvidia has already told investors that it expects 70% revenue growth next year. Nvidia can make forecasts like that with some confidence because many AI hyperscalers have already locked in their capital expenditure plans for next year, as these decisions must be made well in advance. Contracts for chips have to be signed early if those cloud computing companies are going to ensure that when their new data center facilities have been constructed and connected to power, they’ll have the chips and servers they need.
With that in mind, calculating what Nvidia’s earnings will look like next year is fairly easy. If Nvidia hits Wall Street estimates for next year, and its stock doesn’t move in price from now…
