{"id":467230,"date":"2026-05-26T05:00:11","date_gmt":"2026-05-26T05:00:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/467230\/"},"modified":"2026-05-26T05:00:11","modified_gmt":"2026-05-26T05:00:11","slug":"this-ai-stock-has-been-called-overvalued-for-3-years-the-bears-keep-losing","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/467230\/","title":{"rendered":"This AI Stock Has Been Called Overvalued for 3 Years. The Bears Keep Losing."},"content":{"rendered":"\n<p class=\"yf-1fy9kyt\">Nvidia (NASDAQ: NVDA) has been one of the best-performing stocks ever, thanks to the growth of artificial intelligence, but for much of its run, people have called it overvalued. Cathie Wood wrote that it was &#8220;priced ahead of the curve&#8221; in May 2023. In early 2024, Morningstar analysts called it overvalued.<\/p>\n<p class=\"yf-1fy9kyt\">This is Exhibit A for why investors shouldn&#8217;t see &#8220;overvalued&#8221; as a bad word. Over the last three years, Nvidia has been up 600%. The S&amp;P 500 has increased 78% over the same period. The bears have been wrong so far, and based on Nvidia&#8217;s financial performance, I think that trend will continue.<\/p>\n<p class=\"yf-1fy9kyt\"> Will AI create the world&#8217;s first trillionaire? Our team just released a report on a little-known company, called an &#8220;Indispensable Monopoly,&#8221; providing the critical technology Nvidia and Intel both need. <\/p>\n<p><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4ac65422-0b91-40d5-adc2-2965aa3e5e99&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fa-sa-ai-boom-nvidias%3Faid%3D10891%26source%3Disaediica0000073%26ftm_cam%3Dsa-ai-boom%26ftm_veh%3Dtop_incontent_pitch_feed_yahoo%26ftm_pit%3D19155&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5de8705e-31e3-4877-9d69-1d0a890219c3\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Continue \u00bb;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Continue \u00bb&quot;}\" class=\"link \">Continue \u00bb<\/a> <\/p>\n<p>       <img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/05\/16e4b85732ba14aa881b5ec7503d67ad.jpeg\" alt=\"An assembly line with a robot arm in an Nvidia factory.\" loading=\"eager\" height=\"576\" width=\"960\" class=\"yf-lglytj  loaded\"\/> Image source: Nvidia.         The numbers keep proving the bears wrong    <\/p>\n<p class=\"yf-1fy9kyt\">Nvidia has consistently surpassed expectations. Since it recently released its fiscal Q1 2027 earnings (which ended April 26, 2026), we have fresh data to review.<\/p>\n<p class=\"yf-1fy9kyt\">Revenue hit a record $81.6 billion, up 85% year over year and marking 14 consecutive quarters of revenue growth. Data center revenue, which now makes up the bulk of Nvidia&#8217;s earnings, rose 92% year over year to $75.2 billion. Not only does Nvidia continue to deliver excellent growth quarter after quarter, but it also does so with high profit margins, most recently 74.9%.<\/p>\n<p class=\"yf-1fy9kyt\">Detractors often point to Nvidia&#8217;s massive market cap, currently over $5 trillion, as an argument against much future growth. But when you look at how much money it&#8217;s making, the price makes sense, since it&#8217;s not a particularly expensive company. Nvidia trades at 25 times forward earnings, significantly less than fellow <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/semiconductor-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5de8705e-31e3-4877-9d69-1d0a890219c3\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:semiconductor stocks;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;semiconductor stocks&quot;}\" class=\"link \">semiconductor stocks<\/a> Advanced Micro Devices\u00a0and Broadcom, which trade at 61 and 37 times forward earnings, respectively.<\/p>\n<p>    <a href=\"https:\/\/ycharts.com\/companies\/NVDA\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"NVDA PE Ratio (Forward) Chart\" loading=\"lazy\" height=\"473\" width=\"720\" class=\"yf-lglytj loader\"\/><\/a> <a href=\"https:\/\/ycharts.com\/companies\/NVDA\/forward_pe_ratio\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:NVDA PE Ratio (Forward);elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;NVDA PE Ratio (Forward)&quot;}\" class=\"link \">NVDA PE Ratio (Forward)<\/a> data by <a href=\"https:\/\/ycharts.com\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YCharts;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;YCharts&quot;}\" class=\"link \">YCharts<\/a>         Will Nvidia continue to outperform?    <\/p>\n<p class=\"yf-1fy9kyt\">Nvidia almost certainly won&#8217;t keep growing at the same rate it has over the last three years. After all, three years ago, it was worth less than $1 trillion. However, it could still be a market-beating investment, especially considering its sales projections.<\/p>\n<p class=\"yf-1fy9kyt\">It expects approximately $91 billion in revenue in its fiscal Q2 2027, which would be another record-breaker. At Nvidia&#8217;s 2026 GTC conference, CEO Jensen Huang projected that the company&#8217;s Blackwell and Vera Rubin GPUs would see at least $1 trillion in sales through 2027.<\/p>\n<p class=\"yf-1fy9kyt\">Most analysts remain bullish on Nvidia, too, with 52 of 54 covering the company rating it a buy. The average price target is $299, a 35% increase from where Nvidia stock is at the time of this writing.<\/p>\n<p class=\"yf-1fy9kyt\">The AI infrastructure build-out is accelerating, and Nvidia remains one of the <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5de8705e-31e3-4877-9d69-1d0a890219c3\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:top AI stocks;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;top AI stocks&quot;}\" class=\"link \">top AI stocks<\/a>. With Nvidia&#8217;s earnings growth, there&#8217;s a much stronger argument that it&#8217;s undervalued, not overvalued.<\/p>\n<p>     Should you buy stock in Nvidia right now?   <\/p>\n<p class=\"yf-1fy9kyt\">Before you buy stock in Nvidia, consider this:<\/p>\n<p class=\"yf-1fy9kyt\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=68860202-296e-4fe4-b7d8-f0a4c535cf37&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-dyn-headline%3Faid%3D11234%26source%3Disaeditxt0001181%26company%3DNvidia%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D18781&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5de8705e-31e3-4877-9d69-1d0a890219c3\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;10 best stocks&quot;}\" class=\"link \">10 best stocks<\/a> for investors to buy now\u2026 and Nvidia wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1fy9kyt\">Consider when Netflix made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $477,813!* Or when Nvidia made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $1,320,088!*<\/p>\n<p class=\"yf-1fy9kyt\">Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 986% \u2014 a market-crushing outperformance compared to 208% for the S&amp;P 500.\u00a0Don&#8217;t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n<p class=\"yf-1fy9kyt\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=68860202-296e-4fe4-b7d8-f0a4c535cf37&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-dyn-headline%3Faid%3D11234%26source%3Disaeditxt0001181%26company%3DNvidia%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D18781%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DNvidia&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5de8705e-31e3-4877-9d69-1d0a890219c3\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;See the 10 stocks \u00bb&quot;}\">See the 10 stocks \u00bb<\/a><\/p>\n<p class=\"yf-1fy9kyt\">*Stock Advisor returns as of May 25, 2026. <\/p>\n<p class=\"yf-1fy9kyt\"><a href=\"https:\/\/www.fool.com\/author\/20014\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Lyle Daly;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Lyle Daly&quot;}\" class=\"link \">Lyle Daly<\/a> has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, and Nvidia. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;disclosure policy&quot;}\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1fy9kyt\"><a href=\"https:\/\/www.fool.com\/investing\/2026\/05\/25\/this-ai-stock-has-been-called-overvalued-for-3-yea\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:This AI Stock Has Been Called Overvalued for 3 Years. The Bears Keep Losing.;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;This AI Stock Has Been Called Overvalued for 3 Years. The Bears Keep Losing.&quot;}\" class=\"link \">This AI Stock Has Been Called Overvalued for 3 Years. The Bears Keep Losing.<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia (NASDAQ: NVDA) has been one of the best-performing stocks ever, thanks to the growth of artificial intelligence,&hellip;\n","protected":false},"author":2,"featured_media":467231,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,124708,61,60,233,8816,80],"class_list":["post-467230","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-cathie-wood","tag-ie","tag-ireland","tag-nvidia","tag-revenue-growth","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/467230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=467230"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/467230\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/467231"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=467230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=467230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=467230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}