Jensen Huang Just Gave Nvidia Investors Great News and a Reason Why the Stock May Continue Surging in 2027

Nvidia (NVDA -1.23%)‘s stock is up 22% this year as it continues rising, in large part due to expectations of even greater growth ahead. The business has been generating fantastic results, and even in its most recent quarter, its growth rate was over 100%. Remarkably, its growth has been accelerating rather than slowing down.

The chipmaker is the most valuable company on U.S. markets, with a valuation of around $5.5 trillion. And yet, due to its massive earnings growth, it’s not an egregiously overpriced stock. CEO Jensen Huang recently gave investors even more reason to remain bullish heading into next year, as he expects chip sales to double in 2027.

Interest in AI across the globe is driving massive demand

Huang remains optimistic for more growth for Nvidia in 2027, as demand is coming from all areas. Companies are seeing the value that AI has to offer, and it “has so much contribution to the benefits of different industries, different economies, and you can see that in almost every single country that we’re in, people want to invest in AI.” As a result, Huang expects the company to sell twice the number of chips next year.

In terms of revenue, the company projects that for fiscal 2028, its growth rate will come in at 70% (its fiscal year ends in January). That was far higher than analyst expectations of just 44%. For Nvidia investors, these are highly encouraging signs that there are plenty of opportunities outside of just North America that may enable the business to continue generating strong results in upcoming quarters, and into next year.

Nvidia’s stock remains one of the safest AI investments overall

Many AI stocks are risky buys due to their inflated valuations, but with Nvidia trading at a forward price-to-earnings (P/E) multiple of less than 25, it is reasonably priced given how solid its business is. The average stock on the S&P 500 trades at a forward P/E of 20. Nvidia trades at a worthy premium given its impressive growth prospects. And not only has it been growing at a fast pace, but its profit margins are also incredible, coming in north of 60% over the trailing 12 months.

Nvidia’s deep pockets put it in an excellent position to pursue AI-related growth opportunities and further expand its operations in the long run. While there is risk in the tech sector in the event that AI-related spending slows down, Nvidia remains arguably the safest stock to own in the space, given its wide moat, strong financials, and reasonable valuation.