Nvidia (NASDAQ: NVDA) is at a unique point in history. With the rise of artificial intelligence (AI) data centers, Nvidia has transformed into a new company since 2023, and each year, the same trend happens with the stock.
At the start of the year, Nvidia tells investors about all the growth it’s going to generate and how high AI demand is. Every year, the market doubts Nvidia, then the growth comes, and in the second half of the year, the stock soars.
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I see that same trend starting this year, and fortunately for investors, the market hasn’t caught on quite yet. This disconnect creates a huge opportunity to buy the stock now and profit from history. Investors shouldn’t delay, as the stock could easily start its rally at any time.
Starting in 2023, you have to remember that the consensus was that the economy was heading into a recession in late 2022 and early 2023. As a result, optimism was not high. Furthermore, the market was coming off a cryptocurrency crash, which created an inventory excess for Nvidia, causing its earnings to plummet.
As a result, Nvidia entered 2023 on a relatively grim outlook, but all of that changed in Q1 when it told investors about huge AI demand.
Unfortunately, I don’t have the price of forward earnings data dating back to 2023, but I do have it for 2024. That year, the same thing happened. Investors assumed Nvidia’s growth wouldn’t live up to the hype, so the stock traded at low expectations for a few months. Then, it rocketed higher throughout the rest of the year.
2025 was a bit unique because of the tariff sell-off in April, but as soon as the market figured out that Nvidia would be fine, it rallied around the stock.
At the start of 2026, I see a similar setup for Nvidia, so far. The stock is relatively flat and trades for 22 times forward earnings, about the same price tag it trades around at this point of the year. There are also other concerns surrounding Nvidia, like the longevity of heightened AI spending and geopolitical issues like the Iran war.
However, this is no different than the setup in 2025, and I think that Nvidia’s stock will rocket higher throughout the rest of the year once investors realize that Nvidia’s growth is unaffected by many things investors are concerned about.