Projecting where a stock will trade a year from now is notoriously difficult, if not impossible. That said, attempting to do so can sometimes be a telling exercise.

After all, evaluating a rapidly growing business often requires investors to push current fundamentals forward to see whether today’s valuation makes sense, and forecasting a stock’s one-year potential helps with this. In other words, thinking through how a company’s evolving fundamentals can change the picture for a fast-growing business like Nvidia (NVDA +0.77%) provides insight into why the stock is valued like it is.

For the AI chipmaker, the current financial reality is expanding so quickly that valuation multiples that are based on trailing-12-month financials barely…