By Lyle Daly, The Motley Fool
Publication Date: 2026-05-26 02:05:00
Nvidia (NASDAQ: NVDA) has been one of the best-performing stocks ever, thanks to the growth of artificial intelligence, but for much of its run, people have called it overvalued. Cathie Wood wrote that it was “priced ahead of the curve” in May 2023. In early 2024, Morningstar analysts called it overvalued.
This is Exhibit A for why investors shouldn’t see “overvalued” as a bad word. Over the last three years, Nvidia has been up 600%. The S&P 500 has increased 78% over the same period. The bears have been wrong so far, and based on Nvidia’s financial performance, I think that trend will continue.
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The numbers keep proving the bears wrong
Nvidia has consistently surpassed expectations. Since it recently released its fiscal Q1 2027 earnings (which ended April 26, 2026), we have fresh data to review.
Revenue hit a record $81.6 billion, up 85% year over year and marking 14 consecutive quarters of revenue growth. Data center revenue, which now makes up the bulk of Nvidia’s earnings, rose 92% year over year to $75.2 billion. Not only does Nvidia continue to deliver excellent growth quarter after quarter, but it also does so with high profit margins, most recently 74.9%.
Detractors often point to Nvidia’s…
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