Nvidia has reported substantial revenue growth, driven by high demand for its AI chips. The company's data centre revenue and earnings have reached record highs, with revenue jumping 62% year-over-year to $57 billion. This surge is attributed to the increasing adoption of AI infrastructure, including Blackwell GPUs, and strategic partnerships with major cloud providers. Nvidia's CEO, Jensen Huang, revealed a $500 billion order backlog through 2026, which includes demand for the forthcoming Rubin processors.
Analysts project continued growth for Nvidia, with expectations of a 39% sales increase in fiscal year 2027. Major players in AI, such as OpenAI, Google, Microsoft, Amazon, and Meta, rely on Nvidia's hardware to train their next-generation models. Hyperscalers are investing heavily in data centres built around Nvidia's technology, driving unprecedented demand for the company's processors. Nvidia forecasts $65 billion in Q4 revenue, surpassing analysts' expectations.
Despite overall positive sentiment, the market is showing some concern about AI spending. While Nvidia's stock has performed well, some analysts are questioning whether AI's rapid expansion and high valuations are sustainable. Projections indicate a deceleration in growth, with revenue increases of 60% in fiscal 2026, 41% in 2027, and 22% in 2028.
