Nvidia Could Have a Monster October. Here's Why.

Key Points:

• Nvidia's stock has risen about 21% in 2026, outperforming the market, but investors anticipate even greater returns as the company projects massive growth for 2027 driven by AI hyperscalers' increased data center spending.
• The company expects 70% revenue growth in fiscal 2028, fueled by AI hyperscalers' planned data center capital expenditures rising from $800 billion in 2026 to $1.3 trillion in 2027, though the market has yet to fully price in this growth.
• Nvidia's Q3 earnings season, particularly in October, may reveal AI hyperscalers' 2027 capital expenditure guidance, potentially validating Nvidia's growth projections and prompting a market revaluation of the stock.
• Currently trading at 28 times trailing earnings, Nvidia's valuation does not reflect the expected 70% growth next year; using fiscal 2028 projections, the stock's price-to-earnings ratio could drop to 14, indicating it is undervalued.
• If Nvidia achieves analyst expectations and the market adjusts to a 30 times earnings valuation, the stock could more than double by the end of fiscal 2028, making it an attractive investment opportunity.