NVIDIA’s Revenue from AI Could Increase Tenfold by 2027 to $300 Billion


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.

Join the discussion for this post on our forums...

Peter Brosdahl
As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my dad, a used Atari 400, around 1982. Eventually it would end up being a lifelong passion of upgrading and modifying equipment that, of course, led into a career in IT support.

Recent News