Prediction: Nvidia Will Have an Incredible November Thanks to 1 Event

Nvidia (NVDA -4.22%) has been a market-average stock this year, rising about 15.5% versus 13% for the S&P 500. Investors are used to huge outperformance, and this year hasn’t delivered that. However, I believe it could be coming in November.

Nvidia reports Q3 earnings in November, likely around Nov. 18, if past earnings dates are indicative of future ones. I think news from this event could kick-start a major rally, making Nvidia a top stock to buy in the first half of November.

Image source: The Motley Fool.

The stock is priced to soar

Nvidia’s low performance this year hasn’t come from a lack of results. In the second quarter, revenue rose 106% year over year to $96.2 billion. That’s simply incredible, especially considering Nvidia’s size. Wall Street analysts expect another strong Q3, with revenue estimated to rise about 91%. For the fourth quarter, that figure is 83%. Clearly, impressive results are expected from Nvidia, yet the stock has gone nowhere.

To make matters even more head-scratching, Nvidia has already told investors that it expects 70% revenue growth in 2027. Normally, companies don’t make projections like that six months before they report Q4 earnings, but Nvidia chose to do it in Q2. Why? It has high visibility into revenue, as most of its 2027 business is likely already locked in.

However, none of this sentiment has made its way into the stock yet, as its stock is priced fairly cheaply considering its growth. Currently, Nvidia trades for 27 times earnings.

NVDA P/E Ratio data by YCharts. P/E = price-to-earnings.

While that price by itself may not raise red flags, what it tells investors is that none of its future expected growth has been priced into it. Several big tech stocks have hovered around this level for a long time, but none of them had the expected growth rates of Nvidia. As a result, Nvidia’s stock could be primed to soar because the future looks bright.

What kind of returns can investors expect?

If we use next year’s earnings projections, which have historically been undershot by Wall Street analysts, Nvidia trades for just 13.5 times next year’s earnings.

NVDA P/E Ratio (Forward 1y) data by YCharts.

So, what does that mean for the stock? Right now, only two quarters’ worth of results are available for Nvidia. If Nvidia hits Wall Street’s estimates over the next year and a half, its earnings will double. Should Nvidia’s valuation maintain its 27 times earnings level throughout the next year and a half, that means the stock would have to double from today’s level.

Any time you can identify a stock that can double in a relatively short time frame is a big deal, and investors shouldn’t ignore this one.

The reality is that once Nvidia reports another solid Q3, the stock should move substantially higher to keep its valuation at a reasonable range. With how reasonable Nvidia’s valuation is now, business results will be what drive future stock price growth, and with Nvidia already telling investors to expect 70% growth next year, this makes this stock a no-brainer buy.

NVDA – Nvidia

$204.64-$9.02 (-4.22%)

NASDAQ · As of 4:00 PM ET 10/30/26

Furthermore, if you listen to any of the AI hyperscalers, it’s pretty clear that the AI build-out will not slow down through 2030. That leaves multiple years after 2027 to continue growing, making Nvidia a smart long-term investment. The market is currently bearish on all things AI. Smart investors are buying now instead of at the top of hype cycles, and now is the perfect time to buy Nvidia.

With it reporting earnings in the second half of November, there’s plenty of time to buy Nvidia stock before what I’m expecting will be a huge quarter.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.