Nvidia Growth Could Slow to 20% But Its Stock Can Still Double, Expert Says
Key takeaways
- Even if Nvidia’s earnings growth slows to 20‑30%, its large earnings base could still support a doubling of the stock over the next five to ten years.
- 96% current earnings growth
- 70% projected growth next year
- 20‑30% projected growth over 5‑10 years
What happened
Nvidia Corp (NVDA) is expected to keep growing earnings even if its growth rate slows to 20‑30% over the next five to ten years, according to Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments. Tengler cites Nvidia’s current 96% earnings growth, which she projects will decelerate to 70% next year and then settle at 20‑30%. She argues that a large company can still add significant profits at a slower rate and that Nvidia’s stock could double in value over the long…
Why it matters
Investors often see slowing growth as a warning sign, but Tengler believes Nvidia can still deliver strong returns because its earnings base is large. If Nvidia maintains healthy earnings expansion, the stock could continue to rise even without the explosive growth it has shown. This perspective could influence how…
Short-term and longer-term
Short-term. Over the next few weeks, watch Nvidia’s data‑center demand and customer spending for signs of sustained earnings growth.
Longer-term. For the next several months, Nvidia’s long‑term upside hinges on its ability to keep earnings expanding at a healthy pace.