NVIDIA’s revenue from AI technology is expected to increase dramatically in the coming years, according to one financial analyst. Mizuho analyst Vijay Rakesh has previously had a positive outlook for NVIDIA but has now revised the forecast to a staggering expectation. Presently NVIDIA is anticipated to ship roughly 100,000 AI server units this year for around $250,000 to $300,000 bringing an estimated income of $25 billion to $30 billion. As impressive as those numbers sound, they could be just the tip of the iceberg.
Rakesh further speculates that by 2027 NVIDIA’s revenue from AI could potentially reach $300 billion. This estimate is based on the company having sold an expected 1.5 million units by then, accounting for three-quarters of the market share, and also adjusting for the price per unit having dropped to around $200,000.
From Business Insider:
“With demand for generative AI accelerating, we see significant opportunities for hardware suppliers powering the higher compute needs for large-language models, particularly AI powerhouse NVDA,” Rakesh wrote, referring to the Santa Clara-based chipmaker by its stock symbol.”
It’s been no secret that NVIDIA has already been raking in record-breaking income from AI this year. From ChatGPT to Elon Musk, the company has well-known customers with deep pockets. CEO Jensen Huang has seen his net worth nearly double to $40 billion during the AI boom. Huang has been at the forefront of AI news in 2023 and said that “they saw it coming a decade ago”. NVIDIA shares, per Market Watch, have already increased by 200% this year and while it has not revealed how much was due to AI technology it did post first-quarter revenue of $7.2 billion. Although Rakesh’s forecast seems a bit on the extreme it is far from being the only one proposing the chipmaker is exceeding revenue and share expectations.