Nvidia (NVDA +0.84%) has been a life-changing stock for many investors. If you invested $10,000 at the start of 2023, that sum is now worth nearly $160,000. That's life-changing returns for those who bought and held on, but could it still deliver those returns?
Let's see if buying Nvidia stock could set you up for life, as the answer may surprise you.
Image source: The Motley Fool.
Nvidia has major short-term upside
Nvidia has been one of the biggest beneficiaries of the artificial intelligence build-out, as its graphics processing units (GPUs) have become the industry's top choice. This has allowed the company to grow as quickly as the AI space in general, and there are not many signs of it slowing down. During Nvidia's most recent quarter, it posted year-over-year revenue growth of 106%, accelerating after slowing in 2025.
NVDA Revenue (Quarterly YOY Growth) data by YCharts
While management forecasts growth to slow next year, it isn't by much. For the next fiscal year, the company projects 70% growth -- an incredible figure, considering Nvidia is worth more than $5 trillion. What's even more amazing about this statement is that none of it has been priced into Nvidia's stock. For nearly every other company, if management tells you they will grow by 70% over the next year, the stock shoots up in response, pricing in a lot of that success. However, that's not the case with Nvidia.
NASDAQ: NVDA
Key Data Points
Nvidia currently trades at 25 times forward earnings, which isn't all that much more expensive than the S&P 500 (^GSPC -0.38%), which trades at 21 times forward earnings. With Nvidia being an above-average company, I think this premium is warranted. But Nvidia's valuation only considers this year's growth, not next year's 70% projection. When that is factored in, Nvidia's valuation falls to below 15 times next year's earnings.
NVDA PE Ratio (Forward 1y) data by YCharts
That's an absolute steal, and investors should be taking advantage of Nvidia's cheap stock price.
But does Nvidia still offer life-changing returns? I don't think so. At best, Nvidia's stock could double over the next year, providing a quick return on investment. However, that's just a single doubling. I still think that makes the stock worth buying, but it falls short of setting you up for life.
Nvidia is among the best stocks to buy in the market. Don't miss your chance to own one of the best-performing stocks at a steep discount.
