Not Anthropic. Not AMD. Here's My Top AI Stock for 2027.
2026-10-11 12:15
•Keithen Drury •The Motley Fool
••••• ••• Axe Cap view
Nvidia: The AI Bet Worth Watching for 2027
Nvidia’s earnings and growth projections suggest it could double by 2027, unlike peers AMD and Palantir.
Nvidia’s Q2 numbers revealed staggering growth—106% revenue and 128% earnings per share up from last year, pointing to real momentum in AI chips. Despite this, it trades at just 15 times forward earnings, half the multiple its growth might deserve. Look, many popular AI stocks have already run hard in 2026, leaving little room for further upside. AMD, which rocketed 200% last year, looks fully priced for its forecast, and Palantir’s prospects seem overstretched. For South African investors, the take here is to watch USD/ZAR closely, as any tech-driven risk appetite abroad could push the rand either way. If Nvidia hits its expected 70% revenue growth in 2027 and the market corrects the valuation, its shares could easily double. That said, it’s a big if: a tech selloff or AI hype fading could stall gains. Nvidia represents a more grounded AI story than the hype-heavy names. this is just our opinion and not financial advice
Consider buying Nvidia via USD/ZAR exposure or ADRs, watching for dips to add. Avoid AMD and Palantir for now; their optimism seems priced in already.
- USD/ZAR
- NVDA
- A major tech correction hits AI stocks
- USD/ZAR volatility reduces gains for local investors
6/10
The author argues Nvidia is the best AI stock pick for 2027, despite its modest 30% gain in 2026. With revenue growth of 106% and EPS growth of 128% in Q2, Nvidia's stock is undervalued at 30x current earnings but trades at only 15x forward earnings. If the company achieves its projected 70% revenue growth in 2027 and the market re-rates it to a 30x multiple, the stock could double.
Our take is based on reporting first published by The Motley Fool.