Nvidia’s stock historically has made dramatic moves in the year after initial Fed interest-rate cuts, and it has outperformed the S&P 500 on average when looking at all rate cuts since the IPO.

Wall Street expects Nvidia to deliver $4.02 in earnings per share during fiscal 2026, which places its stock at a forward P/E ratio of just 28.7. From that perspective, it actually looks quite cheap!

The high-flying AI chip superstar seemed to run out of gas in the fiscal 2025 second-quarter earnings report it released on Aug. 28. While the company beat estimates on the top and bottom lines, the differences were narrower than investors were used to, and guidance was also less impressive than some had hoped.

Key Takeaways Nvidia shares have exploded this year, but William Blair analysts say there's still an upside opportunity.The firm believes Nvidia has a one- to two-year lead on its competitors in artificial intelligence.