Increasing doubts about Nvidia's stock value? Check out this chart to alter your perspective.

Nvidia, the AI technology giant (NVDA), is gearing up for an impressive year ahead. The company's fiscal year 2026, which is currently underway, is anticipated to be a significant period of growth.

According to recent projections, Nvidia's revenue for the upcoming year is expected to grow by an impressive 53%. This growth is expected to lead to an anticipated earnings per share of $6.04. This represents a 46% increase from the previous year’s earnings of $2.99 per share.

The company's current P/E ratio, standing just above 40, reflects the frothy valuation of Nvidia shares. This valuation makes them vulnerable to extreme volatility, particularly following the post-earnings setback.

The worldwide AI hardware market is expected to grow at an average annualized pace of 18% through 2034, according to Global Market Insights. This growth trajectory suggests a promising future for Nvidia, as a leading player in the AI technology sector.

However, it's important to note that the high growth rate and valuation of Nvidia shares could make them a potentially risky investment. The S&P 500, for comparison, currently trades at less than 25 times its trailing earnings and just under 24 times its forward-looking profits.

Despite the potential risks, Nvidia's growth prospects are hard to ignore. Few, if any, other companies are matching Nvidia's enormous growth. The average earnings growth rate for Nvidia this year and next is projected to be more than 40%.

In conclusion, Nvidia's fiscal year 2026 looks promising with significant growth prospects. However, investors should be aware of the potential volatility associated with the company's shares due to their high valuation. As always, it's recommended to conduct thorough research before making any investment decisions.