Nvidia (NVDA.US) Significantly Raises AI Chip Revenue Forecast, Cumulative Sales Could Reach One Trillion Dollars by End of 2027

Amid the ongoing surge in artificial intelligence computing demand, global chip giant NVIDIA (NVDA.US) has once again raised its long-term revenue forecast for AI chip business. CEO Jensen Huang stated at the annual GTC developer conference that the company expects its Blackwell and Rubin generations of AI chips to generate at least $1 trillion in cumulative revenue by the end of 2027, further highlighting the enormous market potential brought by the AI wave. As of Monday’s close, NVIDIA’s stock rose 1.63% to $183.187.

Previously, NVIDIA predicted these chips would generate about $500 billion in sales by the end of 2026. The latest forecast not only raises the revenue scale to the trillion-dollar level but also extends the timeline by one year. Huang said at the conference that global computing demand has grown unprecedentedly over the past two years. “I believe computing demand has increased 1 million times in the past two years. Not only do we feel this, almost all startups do as well.”

At GTC, NVIDIA also announced several new products and technological updates to further solidify its leadership in AI infrastructure. The company revealed plans to integrate technology from AI chip startup Groq into its product ecosystem and launched Groq3LPU (Language Processing Unit). This dedicated chip, mainly used for inference in large language models, can significantly improve the speed of text generation and response requests in AI systems. NVIDIA plans to use it as a co-processor alongside existing AI accelerators to enhance overall system performance. The chips will be manufactured by South Korea’s Samsung Electronics, with systems based on this technology expected to launch in the second half of this year.

Meanwhile, NVIDIA showcased a new general-purpose CPU architecture called “Vera,” marking the company’s further expansion into the traditional data center processor market. Huang said that the CPU business “will definitely become a multi-billion-dollar market opportunity.” As AI data center architectures become increasingly complex, general-purpose CPUs responsible for coordinating different computing tasks are becoming more important.

NVIDIA stated that the Vera processor will combine advantages of data center, gaming PC, and laptop processors, capable of handling large data inputs simultaneously, completing complex calculations quickly, and consuming less power. The company plans to launch server systems composed entirely of CPUs, representing a new product form for NVIDIA. These computers can operate in conjunction with other NVIDIA systems or independently.

In recent years, NVIDIA has accelerated its technology update cycle, launching a new core architecture almost every year. The company’s next-generation flagship AI system is expected to debut in the second half of 2026, named “Vera Rubin,” in honor of the renowned astronomer Vera Rubin, who provided evidence for dark matter.

The explosive growth in AI chip demand has propelled NVIDIA to become one of the world’s most valuable companies, with a market capitalization of about $4.4 trillion. However, as investors increasingly focus on AI investment return cycles, the company’s stock price has recently slowed its rise. This year, NVIDIA’s stock has fallen about 3.4% at one point, but on GTC day, it still rose 1.6%, closing at $183.19.

Despite NVIDIA’s leading position in the AI chip market, competitive pressures are intensifying. Competitor AMD (AMD.US) is accelerating the launch of new AI accelerators, while tech giants like Amazon (META.US) are developing in-house chips to reduce reliance on NVIDIA products.

Meanwhile, as AI software matures, some companies are exploring the use of lower-cost, lower-power CPUs to run pre-trained AI models, providing new strategic opportunities for NVIDIA to expand its CPU business. Previously, the company partnered with social media giant Meta (META.US), indicating that its processors may be sold as standalone products in the future.

Industry experts believe that NVIDIA is gradually transforming from a graphics processor manufacturer into a comprehensive AI computing platform provider. Its product ecosystem now covers processors, networking equipment, software platforms, and AI models. By continuously expanding its technological ecosystem and product lines, NVIDIA aims to establish deeper industry barriers in AI infrastructure.