By Keithen Drury, The Motley Fool
Publication Date: 2026-10-16 23:04:00
Nvidia (NASDAQ: NVDA) 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.
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 »
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…
