Where Will Nvidia Stock Be in 5 Years?
An investment of just $100 made in shares of Nvidia (NASDAQ: NVDA) five years ago is now worth about $1,339, which is not surprising as the market has rewarded the chipmaker's impressive growth in revenue and earnings handsomely.
A big chunk of those gains came in 2023, driven by a significant acceleration in Nvidia's growth thanks to the company's dominant position in the market for artificial intelligence (AI) chips and the recent recovery in the personal computer (PC) market, which kick-started the growth of its gaming business.
Even better is that analysts forecast Nvidia will grow at a much faster pace in the next five years compared to the growth it has clocked in the previous half-decade. More specifically, consensus estimates forecast Nvidia's earnings to increase at a compound annual growth rate (CAGR) of 103% over the next five years. That would be more than double the 48% CAGR Nvidia's bottom line has clocked in the past five years.
Source Fool.com
