According to a report from Saxo Bank, Nvidia’s outperformance will continue in 2025 due to robust demand for its revolutionary Blackwell chip. Apparently, this chip has showcased a 25x increase in the performance of AI calculations per unit of energy consumed compared to the H100 generation.

Looking ahead, Wall Street's consensus estimate suggests that Nvidia's EPS could come in at $4.43 in fiscal 2026. That places the stock at a forward P/E ratio of just 32.1. This means the stock will have to soar 82% next year just to trade in line with its 10-year average P/E of 58.6, which implies a stock price of $259!

If there’s one stock that’s deserving of a lengthy breather after an explosive sprint forward, it’s Nvidia (NASDAQ:NVDA). Shares of Jensen Huang’s GPU company have risen by close to 700% in the last two years.

Nvidia is on its way to becoming one of this year’s top performers across three indexes. The post Should you buy Nvidia stock before 2025? The evidence is piling up, and it says this appeared first on The Motley Fool Australia.