By Will Healy
Publication Date: 2026-04-12 18:02:00
Nvidia (NVDA +2.59%) is a stock rarely associated with frustration. As the dominant producer of artificial intelligence (AI) accelerators, it has turned into one of the most successful stocks in market history.
Nonetheless, growth investors have come to expect incredible returns from this stock over the long term. If looking for such returns, the chip stock could disappoint, and here’s why.
Image source: Nvidia.
Putting Nvidia stock into perspective
To be clear, I’m not advocating selling Nvidia stock as it will likely continue to beat the market. Its revenue grew by 65% in fiscal 2026 (ended Jan. 25), an unheard-of feat for a company with a market cap of $4.6 trillion. Also, since it holds $63 billion in liquidity and dominates the AI chip market, more conservative investors may take a greater interest in the company.
However, for growth investors, the market cap is likely the problem. Since it is already the most valuable company in the world, it will probably fall victim to the law of large numbers, and its performance will move closer to the mean as it grows. If a growth investor hopes for a 10x return from this point, a $46 trillion market cap in the next several years seems like a pipe dream.
With its rapid growth, an eventual doubling to $9.2 trillion is likely. Still, stock growth could slow if its 37 price-to-earnings (P/E) ratio moves closer to the S&P 500 average of 29.
Today’s Change
(2.59%) $4.76
Current Price
$188.67
Key Data Points
Market Cap
$4.6T
Day’s Range
$