Nvidia Expects to Make $1 Trillion From AI Chips Through ’27

$1 trillion, which is a range between 2025 and the end of 2027. The prior figure was $500 billion, which was stated on October 28th of last year, over a period of five fiscal quarters through the end of calendar 2026. So what this new number is $1 trillion between 2025 and the end of 2027. It doesn't represent an acceleration nor an expansion of the outlook that NVIDIA had kind of given. It's not saying that growth is accelerating beyond the prior trend. What they are doing is making that outlook further out there, telling us what they see through the end of next year, 2027. And the market reaction represents, you know, the line chart, bring up your chip on the terminal. Nvidia shares massive spike when when Jensen Huang said it on stage and then Wall Street did the math and he realized this is just the natural progression of how things would go if things started what he announced in October. Yeah, I mean, it's very, very complicated because you can't say this is what they're tracking out on a on a per quarter basis going forward. The original forecast was just Blackwell Rubin Systems. It was stated out loud by Jensen Huang on October 28, and then it was a mismatch between a forecast for five fiscal quarters against a dateline of the end of this calendar year, 2026. There's another data point within it, and I posted the slide on X. There's a pie chart that they shared with it. What's really interesting is that media is saying that 60%, 60 0% of that revenue opportunity is coming from the hyperscalers still just those four big cloud computing providers. And the reason that's important is that that NVIDIA has been something very closely tracked, how much they're reliant on the hyperscalers only and how diversified their customer base is. And it seems is it actually it's swung back to being heavily a majority, being around the hyperscalers. You know, I did the same thing because I saw the number and I'm like trying to understand like, where's Ed? I need some context. And I was looking at was it the CIS reporting that Ian and you guys all did reporting and at that point was talking about $500 billion, right in revenue by the end of 2026 and I think an opportunity that it could eclipse that. So so we need to kind of I don't know. Is there a question you would ask Jensen at this point off of this number or off of this? Yeah. Why didn't you guys file an 8-K or or put it in writing so the market could understand it? And actually, like, I don't know, is think that the market might sympathize with me on that question but is that. Yeah and is the reason is because he wants something flashy for this event that he holds twice a year.