<div id="readability-page-1">Nvidia (NVDA -2.01%) has been one of the companies that have been in the crosshairs of investors dumping stocks amid the market downturn. This shouldn't surprise anyone since Nvidia has been one of the best-performing stocks over the past few years, and many investors have made huge unrealized gains. But there's still plenty of upside for it, and I think right now could be a great buying opportunity. The stock had phenomenal years in 2023 and 2024, and although 2025 is looking a bit shaky, I won't be surprised if it soars by the end of 2025. <h2>Nvidia's GPUs are powering the AI arms race</h2> Nvidia rose to become one of best AI stocks (if not the best) because it sells graphics processing units (GPUs) and the infrastructure to support them. GPUs are one of the more popular hardware options for training AI models because of their excellent computing ability and versatility. GPUs can process multiple calculations in parallel, which makes them incredibly fast at processing complex calculations. While some types of computing equipment can outperform them, this requires the workload to be set up in a specific manner, which may not be possible depending on the situation. As a result, GPUs have become the go-to option for many AI hyperscalers. This has caused Nvidia to deliver unprecedented growth figures for its size. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/c444c2f6ef0b47a055a5283ae14595a3.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="456" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/c444c2f6ef0b47a055a5283ae14595a3.png"/> NVDA Revenue (TTM) data by YCharts; TTM = trailing 12 months. However, it's fairly obvious that its growth looks to be slowing (although 78% revenue growth is nothing to sneeze at). Still, this is the investor's primary concern with the company: When will enough computing power be enough? Recently, CEO Jensen Huang spoke at the company's annual GTC event and boldly predicted that data center revenue will surpass $1 trillion by 2028. Considering that Nvidia's data center revenue totaled $115 billion over the past 12 months, that prediction implies a lot more growth. But is it an unreasonable prediction? I don't think so. In its fiscal 2025's fourth quarter (ended Jan. 26), Nvidia's data center business grew revenue at a 93% pace. For the data center divisions to reach $1 trillion in revenue by 2028, they would need to grow at a compound annual rate of 72%. So, Huang's bold projection shows a moderate slowdown in growth from today's levels but still a ridiculous pace overall. This will be a key figure to watch in the quarters reported throughout 2025. If its data center growth trends lower and approaches that 70% pace, it will be clear that Nvidia likely won't hit its $1 trillion projection. But if it stays elevated in the 80% to 90% range, then it could have a shot at hitting its lofty $1 trillion revenue goal. The $1 trillion goal may be a bit high, but investors should still understand that demand for GPUs isn't going anywhere. With high demand continuing, this should reassure investors. <h2>The stock looks cheap in light of the massive growth</h2> Now, with the stock down around 20% from its all-time high, it's a great time to look at scooping up shares. Following the sell-off, it now trades near the lowest levels it has seen over the past few years. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/7aac2d9e1803c4428e13e00ae3e49b7c.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="441" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/7aac2d9e1803c4428e13e00ae3e49b7c.png"/> NVDA PE Ratio (Forward) data by YCharts. The stock looks like an absolute steal at 26 times forward earnings; many big tech companies still trade for much higher than that despite much worse growth prospects. Considering that the S&amp;P 500 trades for 21 times forward earnings, you don't have to pay much of a premium to own one of the biggest growth stocks of our time. Even if Nvidia falls short of its lofty $1 trillion protection, it will still put up monster growth, thanks to the huge spending from the AI hyperscalers. I think Nvidia's stock is just getting started, and with the shares on sale, now makes for an excellent time to take advantage. </div>

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. 

According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

NVIDIA Financial Results for Q4 Fiscal 2025

NVDA

Nvidia's stock has dropped over 20% from its all-time high, but analysts believe it could rebound significantly by the end of 2025. The company has been a top performer due to its GPUs, which are essential for AI development. Despite concerns about slowing growth, Nvidia's CEO predicts data center revenue could reach $1 trillion by 2028. Currently trading at 26 times forward earnings, the stock is considered undervalued, making it an attractive buying opportunity for investors amid ongoing high demand for GPUs.

- Nvidia has faced stock sell-offs amid market downturns, but it remains a strong investment opportunity due to its significant growth in the AI sector.  
- CEO Jensen Huang predicts data center revenue will exceed $1 trillion by 2028, requiring a 72% compound annual growth rate, which is ambitious yet plausible given current trends.  
- With the stock down 20% from its peak and trading at 26 times forward earnings, it presents a compelling buying opportunity for investors looking to capitalize on ongoing demand for GPUs.

Nvidia Stock Is Down Over 20% From Its All-Time High. Here's Why It Could Soar by the End of 2025.