Nvidia (NASDAQ: NVDA) has seen its stock increase over 740% in the past three years, reflecting a significant surge in demand for AI technology. In the fiscal first quarter of 2026, which ended April 27, the company’s sales rose 69% year-over-year, with earnings per share (EPS) reported at $0.81, despite a $0.15 impact from U.S. policy affecting shipments to China.
As demand for AI chips grows, Nvidia claims to hold 70-95% of the AI chip market. The company’s data center revenue increased by 73% from the previous year, outpacing overall revenue. CEO Jensen Huang noted that AI inference token generation surged tenfold within the last year, pointing to a dramatic increase in the need for AI computing capabilities.
Despite its rapid growth, Nvidia’s stock trades at a relatively moderate 25 times next year’s earnings estimates, suggesting potential for further appreciation. Analysts estimate that a compound annual growth rate of 15% could allow Nvidia’s stock to double in value over the next five years, making it a potentially compelling investment opportunity.
