By Daniel Sparks
Publication Date: 2026-04-02 01:22:00
Projecting where a stock will trade a year from now is notoriously difficult, if not impossible. That said, attempting to do so can sometimes be a telling exercise.
After all, evaluating a rapidly growing business often requires investors to push current fundamentals forward to see whether today’s valuation makes sense, and forecasting a stock’s one-year potential helps with this. In other words, thinking through how a company’s evolving fundamentals can change the picture for a fast-growing business like Nvidia (NVDA +0.77%) provides insight into why the stock is valued like it is.
For the AI chipmaker, the current financial reality is expanding so quickly that valuation multiples that are based on trailing-12-month financials barely capture the company’s momentum. So, we’ll instead want to spend time thinking of the trajectory of the underlying business — and it’s an incredible pace.
Image source: The Motley Fool.
Staggering momentum
The company’s latest financial update highlights why the market continues to reward the stock. Nvidia’s revenue in its fourth quarter of fiscal 2026 (a period that ended on Jan. 25, 2026) jumped 73% year over year to $68.1 billion.
This growth was driven primarily by its data center segment, which caters to clients building artificial intelligence (AI)-capable data centers. The segment generated a record $62.3 billion in revenue — up 75% year over year.
The sequential trend is just as telling. Total revenue rose 20% from the $57.0…
