By Harsh Chauhan, The Motley Fool
Publication Date: 2026-05-30 13:14:00
Shares of Nvidia (NASDAQ: NVDA) have appreciated 58% over the past year. While that’s an impressive jump, the stock’s returns fade in comparison to the 164% spike in the PHLX Semiconductor Sector index over the same period.
I think that the market hasn’t rewarded Nvidia stock enough for the outstanding growth it has been delivering quarter after quarter. The company’s latest quarterly report hasn’t done much to change its fortunes either, as the stock has slipped despite crushing Wall Street expectations when it released its fiscal 2027 first-quarter results (for the quarter ended April 26) on May 20.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, it won’t be long before Nvidia steps on the gas once again. In fact, there is a good chance of this semiconductor stock jumping to $400 in a year. Let’s see why that may be the case.
Nvidia’s remarkable earnings growth should be rewarded with a premium valuation
Nvidia is a growth stock, meaning its revenue and earnings are growing much faster than the broader market. This was evident from the company’s latest quarterly report. Nvidia’s revenue in the first quarter of fiscal 2027 (which ended on April 26) increased by 85% year over year…
