By Keithen Drury, The Motley Fool
Publication Date: 2026-06-02 09:10:00
Nvidia (NASDAQ: NVDA) stock has had a lackluster year by its standards. It’s up about 13% so far, which would be OK in a normal year because the S&P 500 (SNPINDEX: ^GSPC) typically averages about a 10% return in a year.
But this isn’t a normal year. The S&P 500 is already up 11% so far, and the S&P 500 technology-only sector is up nearly 25%. With the average tech stock showing more than double Nvidia’s performance so far in 2026, investors may be starting to get a bit impatient with Nvidia’s stock.
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However, I think they need to stick it out.
Nvidia is primed to deliver solid returns throughout the rest of 2026, and I think it could start to catch fire in June. The risk-reward profile for Nvidia’s stock is fantastic right now, and I won’t be surprised if it catches up or surpasses the technology sector this month.
Nvidia is trading at an attractive valuation
Nvidia has been absolutely crushing it in 2026. Demand for its graphics processing units (GPUs) has never been higher, and data center build-out rates appear to be rising. During Nvidia’s latest conference call, it projected that 2027 AI hyperscaler capital expenditures will rise to $1 trillion next year. That opens the door for another…