By Jeremy Bowman
Publication Date: 2026-09-23 04:00:00
Even if you’re a total novice to the stock market, you’ve probably heard of Nvidia (NVDA +0.66%).
Nvidia is now the most valuable company in the world, worth more than $5 trillion. Its chips have formed the backbone of the AI revolution, and the top AI labs and cloud computing platforms rely on them to make AI applications run.
If you were fortunate enough to buy Nvidia a decade ago and hold it, you would have made a huge return as the stock is up more than 14,000% during that time. That means a $1,000 investment in Nvidia would now be worth more than $14,000.
The stock won’t do that again over the next decade, but it still looks poised to soar by 2028. Here’s how I see it.
Image source: Getty Images.
Nvidia is still cheap
There’s a lot of jargon in investing, but one of the most important concepts that beginning investors can learn is the price-to-earnings ratio, or P/E ratio. This is a company’s price per share divided by its earnings per share.
Newbie investors often think that a stock’s share price determines whether it is cheap or not. For instance, a $10 stock would be cheap and a $500 stock would be expensive, but the share price alone isn’t really meaningful.
Owning a share of a stock is a claim on its earnings, so what really matters is how much earnings you get relative to the price of the stock. That’s the P/E ratio. The lower it is, the cheaper the stock.
Nvidia now trades at a P/E of 29, which is slightly higher than the S&P 500’s P/E ratio of 25. The S&P…
