Key Points

• Nvidia is posting triple-digit revenue growth and 75% gross margins.

• CEO Jensen Huang believes the company will double the number of chips it sells next year.

• Despite the bullish forecast, shares are up only 21% in 2026.

• 10 stocks we like better than Nvidia ›

Nvidia (NASDAQ: NVDA) has grown into the world's largest company, with a market cap of more than $5 trillion. Its graphics processing units (GPUs) are the gold standard for training and running high-level computing and artificial intelligence programs.

Some people may, however, look at Nvidia's stock price and think that the shine is coming off Jensen Huang's company. Shares are up 21% so far this year, which is fine, but that's not even close to the 239% gain in 2023, the 171% jump in 2024, or even last year's 39% increase. Meanwhile, stocks like Sandisk, Micron, and Intel are all up more than 200% this year and have become Wall Street darlings.

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Are Nvidia's best days in the rearview mirror? Absolutely not. While the chipmaker may not replicate its massive 2023 gain, Nvidia remains an incredibly profitable company whose growth story is far from over. In fact, I think Nvidia is going to be putting up some wild numbers in the next two or three years, and that's why I'll be buying more Nvidia shares.

Nvidia is still growing fast, despite its size

What stands out in Nvidia's most recent earnings report is that the company is still growing at a triple-digit rate. Revenue in the second quarter of fiscal 2027 (ending July 26, 2026) was $96.2 billion, up 106% from a year ago. Of that, $89 billion, or roughly 92.5% of the company's total revenue, came from its data center segment.

Net income was $59.68 billion, up 126% from a year ago, and earnings per share of $2.46 were up 128% from last year. Nvidia is very profitable -- its operating expenses totaled only $8.4 billion for the quarter, and its gross margin was an impressive 75%.

"We're the only company in the world that creates and builds, offers an entire AI factory platform, a full-stack system. And customers can still mix and match," CEO Jensen Huang said. "However, most companies just don't have the skills to do that or desire to do that. And so, there's an entire part of the market that we experience growth. There's sovereign AI, there're regional AIs, there're neoclouds, there're AI start-ups, there're enterprises, where we're seeing -- which represents about half of our business, and that's growing 100% a year."

Nvidia's new product line is just getting started

Nvidia's Hopper and Blackwell architectures have been enormously popular among hyperscalers and neoclouds building computing capacity to meet the growing demand for AI. But the company's Vera Rubin architecture, which uses NVLink chip-to-chip interconnects so its Rubin GPUs and Vera central processing units (CPUs) can share memory and improve efficiency, generates even more revenue. CFO Colette Kress said the Vera Rubin -- now in full production -- and full-stack AI platform has expanded the company's total addressable market from a range of $18 billion to $25 billion per gigawatt from Blackwell to $40 billion from Vera Rubin.

That's one of the reasons why Huang has been so confident in his prediction -- which he made last year and recently reiterated -- that AI infrastructure spending would reach $3 trillion to $4 trillion by 2030. And speaking to reporters last week while in Scotland, Huang suggested that Nvidia would double its chip sales in the coming year.

Analysts are extremely bullish

It's hard to get a group of people to agree on anything -- that's just human nature -- but Wall Street experts are nearly unanimous on Nvidia stock. Analysts at Rosenblatt have a "Buy" recommendation and a $390 price target, representing potential upside of 73%. Bernstein's analysts have a $400 price target and an "Outperform" rating, and Raymond James analysts have a whopping $515 price target and a "Strong Buy" rating.

Nvidia is expected to report another strong quarter when it next reports earnings (likely in late November), with the consensus revenue estimate of $109.0 billion, up 91.2% from the previous year. And more of the same is expected for next year, following the Vera Rubin ramp-up.

"We've got a huge year coming up," Huang told analysts. "And it's going to be pretty extraordinary."

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Patrick Sanders has positions in Nvidia. The Motley Fool has positions in and recommends Intel, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.