Nvidia (NASDAQ:NVDA | NVDA Price Prediction) stock has been stuck in neutral since last August, trading in a fairly narrow range around $180 per share as questions about artificial intelligence (AI) spending fester. Despite blowout quarterly numbers and expectations that hyperscalers could spend as much as $700 billion in capex this year on AI — much of it likely going to Nvidia for its latest accelerators like Blackwell — the stock has gone nowhere.
Yet there is one staggering number that indicates you should buy Nvidia stock while it is still a bargain because it will soon explode higher.
Q3 Earnings Confirm Breakneck Expansion
Nvidia reported fiscal third-quarter results in November showing revenue reached a record $57 billion, up 22% sequentially and 62% year-over-year. Data Center revenue — the primary AI driver — hit $51.2 billion, rising 25% from the prior quarter and 66% from a year earlier. Management guided fourth-quarter revenue to $65 billion, plus or minus 2%.
The AI chipmaker has grown exponentially over the past few years, with revenue surging from earlier bases through relentless demand for its GPUs in AI training and inference. While it might not be able to continue doubling revenue every year — the arithmetic simply gets harder the larger the base becomes — it doesn’t mean Nvidia is still not growing at a breakneck pace. The company’s full-stack ecosystem, including hardware, software like CUDA, and partnerships with model builders, continues to fuel sustained expansion.
Analysts widely expect the upcoming Q4 report on Feb. 25 to show another beat, with the consensus around $65.6 billion in revenue and potential for larger numbers driven by Blackwell sales ramping higher.
Goldman Sachs Points to a Long-Term Surge
Goldman Sachs wrote in a recent research note that its analysts expect Nvidia to beat fourth-quarter revenue estimates by roughly $2 billion — some 5% higher than consensus forecasts, potentially pushing results toward $67 billion. The firm is also calling for a 9% beat on the consensus for the first quarter of fiscal 2027.
The truly staggering number comes from Goldman’s revenue projection for 2028: $513 billion, well above the $400 billion consensus and representing a 53% compound annual growth rate from fiscal 2026 estimates of about $215 billion. At that level, Nvidia would be generating well over $1 billion in sales every single day of the year.
This outlook assumes strong ramps in Rubin GPUs starting in late 2026, continued AI infrastructure demand from hyperscalers, and Nvidia’s dominance in accelerators. Even conservative views see multi-year tailwinds from sovereign AI projects, enterprise adoption, and software monetization.
Why Nvidia’s Range-Bound Stock Looks Mispriced
Nvidia’s current valuation appears attractive relative to its growth trajectory. Today, with the stock around $183, the forward P/E ratio sits near 24, a level not seen in nearly a year and close to the S&P 500‘s multiple. The PEG ratio — its valuation relative to its projected earnings growth rate — hovers under 0.5, signaling significant undervaluation. This compression has occurred as short-term concerns over supply constraints and capex sustainability have taken hold, but the chipmaker’s fundamentals remain robust.
Key Takeaway
Few companies have achieved what analysts are expecting from Nvidia. Walmart (NYSE:WMT) — the world’s biggest sales producer — generated $681 billion in revenue in fiscal 2025. It is expected to grow that some 5% in 2026 and almost 12% in 2027. Even if it continues at that higher rate thereafter — a big assumption — Nvidia will overtake it by 2030 based on Goldman’s trajectory.
There is just no way Nvidia stock can remain range-bound for very long at that pace. Producing the kind of revenue and profits that it is — backed by hyperscaler spending — means the stock will soon soar higher, making its current very cheap valuation a bargain price to pay. With fourth-quarter results imminent, any beat-and-raise scenario could accelerate the breakout investors have been waiting for.
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