Nvidia Stock Could Have Its First Losing Year Since 2022. Here's What It Did After Its Last 7.
Most of the chipmaker's down years were followed by big gains. Is 2026 that kind of down year?
Nvidia's stock is projected to end 2026 with an 11% decline, marking its first losing year since 2022. This scenario is less severe compared to Nvidia's history of significant stock drops, where profits were falling during the downturns. Nvidia's net income has been on an upward trajectory, growing by 65% in fiscal 2026 alone. The company's shares are trading at a lower valuation compared to the S&P 500 average, trading at approximately 11 times expected fiscal 2028 earnings, compared to the S&P 500's forward price-to-earnings ratio of around 18.
Despite the possibility of a down year, the combination of rising profits and a lower valuation suggests that Nvidia's stock may not warrant a quick sell, as it has historically rebounded strongly following periods of decline.
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