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Bold Prediction: Nvidia Is About to Soar. Here's Why.

newsfeedback@fool.com (Howard Smith)
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⚡ Quantum Brief
Nvidia’s stock has stagnated in early 2026 despite consistent 14% quarterly revenue growth in its data center segment, driven by AI demand. Management projects another 14% revenue increase in fiscal Q4 2026, with earnings results due February 25, potentially reigniting investor interest. The company trades at a forward P/E of 23, below historical averages for its growth trajectory, suggesting undervaluation amid a $4.6 trillion market cap. CFO Colette Kress forecasts $3–4 trillion in global AI infrastructure spending by 2030, positioning Nvidia as a key beneficiary of long-term industry expansion. Analysts predict post-earnings revaluation could push shares above market-average multiples, reversing the 2% year-to-date decline.
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Nvidia stock has only gone sideways this year. That is about to change.Nvidia (NVDA 0.11%) isn't some hidden-gem stock. Plenty of individual investors, as well as institutions and mutual funds, own it. Yet sometimes the best stock to pick is the one you already know. Nvidia stock has done nothing this year. There's a good reason to think that's about to change. Image source: Nvidia. The company has continued to grow sales, led by its data center segment. Over the last year, it has grown data center revenue by 14% each quarter on average. Management has guided investors to expect total revenue growth of 14% again in fiscal Q4, compared with Q3. Nvidia is scheduled to report its fiscal fourth-quarter 2026 results on Feb. 25. Even with continued growth expectations, investors haven't been buying Nvidia stock this year. Share prices are down about 2% year to date, and the stock now trades at a forward price-to-earnings (P/E) ratio of about 23. That's in line with the overall market for a company with massive ongoing growth. ExpandNASDAQ: NVDANvidiaToday's Change(-0.11%) $-0.21Current Price$187.77Key Data PointsMarket Cap$4.6TDay's Range$185.66 - $188.4352wk Range$86.62 - $212.19Volume3.3MAvg Vol179MGross Margin70.05%Dividend Yield0.02% Nvidia CFO Colette Kress has repeated several times that Nvidia sees artificial intelligence (AI) infrastructure spending of between $3 trillion and $4 trillion by 2030. She stated, "The scale and scope of these buildouts present significant long-term growth opportunities for Nvidia." I predict that investors will start to see the value in the business, along with the stock's very reasonable valuation, when the company reports earnings on Wednesday, Feb. 25. That should justify a stock price well above the market's average multiple.Read NextFeb 19, 2026 •By Harsh Chauhan2 AI Stocks to Buy Before They Soar 37% and 108%, According to Wall Street AnalystsFeb 19, 2026 •By Geoffrey Seiler3 Unstoppable Artificial Intelligence (AI) Stocks to Buy Right Now for Less Than $3,000Feb 19, 2026 •By Keithen Drury3 Trillion Reasons Why Nvidia Is a Phenomenal Stock to Buy Right NowFeb 18, 2026 •By Adria Cimino3 Once-in-a-Decade Buying OpportunitiesFeb 18, 2026 •By Manali Pradhan, CFAPrediction: These 3 AI Stocks Will Have Tremendous Momentum in 2026Feb 18, 2026 •By Justin PopeGot $5,000? 5 Tech Stocks to Buy and Hold for the Long TermAbout the AuthorHoward Smith is a contributing Motley Fool stock market analyst covering technology and industrial stocks. Prior to The Motley Fool, Howard spent nearly 30 years supervising quality and operations in the steel industry, mostly with leading steel company Nucor. He holds a bachelor’s degree in metallurgical engineering from Lafayette College and a master’s degree in environmental engineering from Johns Hopkins University.TMFBuilt2LastStocks MentionedNvidiaNASDAQ: NVDA$187.77 (0.11%) $0.21*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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