By Trefis Team
Publication Date: 2026-02-23 10:00:00
The Nvidia logo appears on a smartphone screen placed on a reflective surface onto which the Nvidia logo is projected. Nvidia announces numerous major partnerships with Meta and adjustments to its planned investment in OpenAI in Creteil, France, on February 20, 2026. (Photo by Samuel Boivin/NurPhoto via Getty Images)
NurPhoto via Getty Images
Nvidia’s revenue expansion has been remarkable. Sales increased by 114% in FY’25. They are projected to grow an additional 72% in FY’26. For the upcoming fiscal year, FY’27, growth is estimated at approximately 44%, reaching over $325 billion. Few companies in history have managed to maintain this level of scale and growth concurrently. Nonetheless, despite this, the stock is traded at just 25x FY’27 earnings.
Typically, in most sectors, a company with revenue growth exceeding 40% and net margins over 50% would attract a premium multiple. Instead, Nvidia’s valuation has shrunk from nearly 60x during the initial Blackwell ramp-down to about 25x based on forward-looking numbers. The stock price has consistently remained within the $170 to $190 range in recent quarters, while earnings have not reflected this stability.
Nevertheless, history indicates that in semiconductor investing, the most perilous moment to purchase is often when a company appears “inexpensive,” whereas the optimal time is when it seems “costly.” This could indeed apply to Nvidia as well.
Growth Is Outpacing Price
NVDA Multiple
- FY2025: Revenue totaled…
