NVIDIA Predicted to Pull in $300 Billion AI Revenues by 2027

[T0@st]

NVIDIA has been raking in lots of cash this year and hit a major milestone back in late May, with a trillion dollar valuation—its stock price doubled thanks to upward trends in the artificial intelligence market, with growing global demand for AI-hardware. Business Insider believes that Team Green will continue to do very well for itself over the next couple of years: "Mizuho analyst Vijay Rakesh has given NVIDIA's stock price another 20% upside to run—and even this new target of $530 is "conservative," according to a Sunday client note seen by Insider. Rakesh's previous price target for NVIDIA was $400. NVIDIA shares closed 0.7% higher at $446.12 apiece on Monday. The stock has surged 205% so far this year."

Despite the emergence of competing hardware from the likes of AMD and Intel, Rakesh predicts that NVIDIA will maintain a dominant position in the AI chip market until at least 2027: "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 NVIDIA. Insider reports that the company: "could generate around $300 billion in AI-specific revenue by 2027 with a 75% market share of AI server units...That's 10 times his projection of $25 billion to $30 billion in AI revenues this year." Rakesh has reportedly stuck with a $140 buy rating and price target for AMD shares.



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[AnotherReader]

Is that yearly revenue by 2027 or all revenue from AI shipments till the end of 2027?

 

[P4-630]

Jensen Huang/Net worth 2023 40.5 billion USD

 

[pressing on]

Is that yearly revenue by 2027 or all revenue from AI shipments till the end of 2027?

My AI says it is yearly revenue in 2027.

 

[kondamin]

I hope Companies like cerebras eat their lunch when it comes to AI

 

[SOAREVERSOR]

I hope Companies like cerebras eat their lunch when it comes to AI

Given the money involved there will be a lot of competition.

 

[mb194dc]

Does that mean they'll have to be several trillion in revenue on the front end. LLMs themselves don't do much, need consumers, businesses to spend on services using the technology for something.

MS office assistant / bing, chat GPT, programming tools?

 

[QUANTUMPHYSICS]

Microsoft, Apple, AMD, Google, Amazon, Nvidia, Tesla, Micron, Intel,Visa, Mastercard

all you need to do is buy them and hold them.

 

[Wye]

I think the "AI" bubble has reached its peak. Sell now before the inevitable burst.

 

[R0H1T]

It's nowhere near peak but yes I don't expect just AI revenues to top these ridiculous numbers, unless every nation rolls out their version of Social Credit System!

 

[mrnagant]

Insider reports that the company: "could generate around $300 billion in AI-specific revenue by 2027 with a 75% market share of AI server units...That's 10 times his projection of $25 billion to $30 billion in AI revenues this year."

Sounds like $300B/yr.

Q1 datacenter is at $4.28B. Fiscal 2023 datacenter pulled in $15B. So seems like projecting $25~$30B in revenue for fiscal year 2024, and then 10x that for 2027. Based of current trends, there would need to be some serious growth. Even if it is just Nvidia as a whole. FY22 they pulled in $28B and in FY23 they pulled in $28B. Datacenter is up, but gaming (which is still big) was down and their smaller segments Visualization was down and automotive was up but still less than $1B. FY22 was $16B. Right now, their Q1 FY24 is $1B lower than it was in Q1 FY23, but they expect Q2 to have $11B in revenue.

$300B seems bit of stretch even for Nvidia as a whole, let alone AI specific stuff, which at this point seems technically everything they sell is going to have tensor cores in it...

 

[thesmokingman]

I hope Companies like cerebras eat their lunch when it comes to AI

Dojo!

 

[kaktus1907]

Start buying NVDA stock then, you may get a free RTX 5090 by when it's finally out.

 

[zo0lykas]

scam!

just to drag in new investors..

 

[Icon Charlie]

Jensen Huang/Net worth 2023 40.5 billion USD

Yea he maybe worth that much money, but I am sure as hell far better off than he. You have any idea on the cost of security and yes men tagging along with him?
He's not very well liked you know. At least I have the freedom to travel just about anywhere in the world without having someone trying to neck me because of the comment...

"The more you buy... the more you Save"!!!! That me friend is what you call an "Idiot Savant" comment if I ever heard one.

 

[claes]

I imagine the vast majority of people on earth have no idea who Huang is and he just floats around breezily on private flights and fancy hotels while spending most of his time in a castle somewhere in his robe with a private chef and some personal trainer he half-heartedly indulges a couple of times a week