Nvidia Stock Has Gone Nowhere for 6 Months. What Will It Take for Shares to Go Higher?
Over the last six months, shares of artificial intelligence (AI) semiconductor designer Nvidia (NASDAQ: NVDA) have gone nowhere. In fact, as of this writing, the stock is actually down slightly over that time frame. For investors casually watching the headlines, this stock performance might seem entirely disconnected from reality. After all, the business continues to fire on all cylinders, posting exceptional top-line growth and signaling sustained demand from the world’s largest technology enterprises. Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue » So what will it take for shares to go higher? The issue requires looking beyond current momentum and understanding how the market prices hardware businesses amid a historic spending boom. Image source: Getty Images. A historic growth cycle For now, Nvidia’s business looks unstoppable. In the company’s fourth quarter of fiscal 2026 (a period that ended on Jan. 25, 2026), revenue surged 73% year over year to $68.1 billion. This performance was driven by the company’s data center segment, which saw sales jump 75% to $62.3 billion. Profitability was equally staggering. The chipmaker’s earnings per share climbed to $1.76, up from just $0.89 in the year-ago quarter. And the company’s cash generation was robust enough to support returning an impressive $41.1 billion to shareholders through share repurchases and dividends (primarily share repurchases) during the full fiscal year. “Computing demand is growing exponentially,” explained Nvidia founder and CEO Jensen Huang in the company’s fiscal fourth-quarter earnings release. He added that customers “are racing to invest in AI compute” to power their future growth. And the momentum is not expected to stop anytime soon. For its first quarter of fiscal 2027, management guided for revenue to reach approximately $78.0 billion — a significant sequential increase. But perhaps the most striking data point came recently during the company’s GTC event last week. Huang said he now sees at least $1 trillion in revenue from 2025 through 2027. With a figure that large, demand visibility is unusually strong right now. The valuation burden Yet despite this tremendous execution, the stock has struggled to gain ground recently. One reason for this disconnect is the stock’s valuation. Trading at a price-to-earnings ratio of about 36 as of this writing, Nvidia shares are priced for near-flawless execution.