NVIDIA (NASDAQ: NVDA) stock rose to set a new high in early October, signaling a continuation of the rally. The market, despite the uncertainty and headwinds caused by inflation, tariffs, and geopolitical tension, determined that the revenue and earnings growth outlook offset the risks, and the stock is undervalued. NVIDIA’s breakout also means the S&P 500 index (NYSEARCA: SPY) will most likely follow it higher.
NVIDIA isn’t a cheap stock, trading at roughly 42x its 2026 earnings consensus. However, this premium company merits a premium valuation, and its growth outlook remains a key factor. The 42x price multiple also accounts for significant growth: the P/E ratio falls to only 29x next year’s earnings outlook, 21x the 2030 consensus target, and 11x the 2035 figure, suggesting this stock could increase by nearly 300% in the coming years.
