Why Nvidia Stock May Frustrate Some Growth Investors

By Will Healy – Apr 12, 2026 at 2:02PM ESTKey PointsThe law of large numbers could limit the growth of Nvidia stock.Owning Nvidia could still serve investors well, provided expectations are set appropriately.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. ExpandNASDAQ: NVDANvidiaToday's Change(2.59%) $4.76Current Price$188.67Key Data PointsMarket Cap$4.6TDay's Range$184.32 - $190.0052wk Range$95.04 - $212.19Volume5.9MAvg Vol179MGross Margin71.07%Dividend Yield0.02% Why growth investors should stay the course with Nvidia anyway The saving grace for Nvidia may be the aforementioned 65% annual revenue growth rate. Even among much smaller companies, few AI companies are generating that kind of growth, and even the ones that do face daunting challenges. One of the few to grow faster at the moment is Micron Technology, whose market cap is about $476 billion. The company's revenue rose by 123% in the first half of fiscal 2026 (ended Feb. 26). Still, its history of brutal sell-offs when chip cycles turn negative may discourage some investors. Additionally, CoreWeave has a market cap of $55 billion and reported a 168% revenue increase in 2025. Unfortunately, it continues to incur huge losses, and the massive capital expenditures (capex) required to meet demand for AI data center capacity have led to debt levels that have put the company at risk. In comparison, investors have a much lower-risk growth scenario with Nvidia. The consensus 12-month price target on Nvidia is around $274 per share, an approximate 45% gain on the current share price. In the end, it is likely true that Nvidia has become too large to be a get-you-rich stock. Still, Nvidia can make one significantly wealthier, and if investors can temper expectations, it should still be a no-brainer artificial intelligence stock, even for investors with high growth expectations.Read NextApr 12, 2026 •By Bram Berkowitz2 of the Most Owned Stocks on Robinhood Also Have at Least 50% Upside, According to Wall StreetApr 12, 2026 •By Adria CiminoNvidia Built an AI Chip Empire. But It's This Other Creation That Makes the Stock a Screaming Buy Today.Apr 12, 2026 •By Chris Neiger1 Wrong Way to Think About the AI Boom Right NowApr 12, 2026 •By Will Healy3 AI Stocks to Hold No Matter What Happens in the EconomyApr 11, 2026 •By Keithen DruryIs It Too Late to Buy Nvidia and Broadcom? Here's What History Tells UsApr 11, 2026 •By Keithen DruryAgentic AI Is the Next Big Thing in AI. Here Are the 5 Best Stocks to Capitalize on It.About the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedNvidiaNASDAQ: NVDA$188.67(+2.59%)+$4.76*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.