Analyst Predicts NVIDIA Could Generate $259 Billion in AI Revenue by 2027

Disclaimer: This article is not meant as investment advice. The author does not hold any position in the stocks discussed.

According to Vijay Rakesh, an analyst at Mizuho, NVIDIA Corporation is projected to generate a staggering $259 billion in revenue from artificial intelligence (AI) by the year 2027. Rakesh has expressed confidence in NVIDIA’s stock, maintaining an “Overweight”rating and setting a price target of $175 per share. This comes ahead of the company’s highly anticipated earnings report scheduled for later this month. NVIDIA’s GPUs (graphics processing units) are currently at the forefront of Wall Street’s AI discourse, yet the company suffered an approximate $600 billion drop in market capitalization last month due to the DeepSeek selloff. While some of these losses have been recovered, investors are closely monitoring the situation to see if the demand for its advanced GPUs will translate into actual orders.

NVIDIA’s Blackwell GPUs: Analyst Insights and Projections for 2025

Prior to the DeepSeek selloff, NVIDIA’s shares had already begun to show signs of stagnation. Although the firm was formerly recognized as the most valuable technology entity in the world, from mid-June 2024 until the onset of the selloff, the company’s stock appreciated by merely 8.6%, underperforming compared to the S&P 500’s gains of 11.5%.

This underperformance can be attributed to investors reassessing NVIDIA’s profit margins and the anticipated delays in the rollout of its Blackwell GPUs. In 2024, the company acknowledged that design issues with the Blackwell technology had escalated their production costs. Moving into 2025, attention has shifted to the timeline of delivering these next-generation AI GPUs.

In a latest report, Rakesh elaborated on the expectations surrounding Blackwell shipments. He indicates that the growth trajectory for Blackwell in the first half of 2025 is likely to be underwhelming. Consequently, he has revised his revenue forecast for NVIDIA’s second fiscal quarter down to $36.7 billion.

Rakesh points out that the cooling requirements for the GB200 are a significant factor influencing the reallocation of orders to later in the year. Nevertheless, he maintains an optimistic long-term outlook for NVIDIA. The report indicates that Mizuho anticipates a total addressable market (TAM) of $350 billion for AI accelerators and expects NVIDIA to command a remarkable 74% of this market share.

Should these projections hold, NVIDIA stands to generate $259 billion in AI revenue by 2027. Meanwhile, its smaller competitor AMD is expected to secure just 4% of the market, while custom-designed AI chips from companies like Broadcom and Marvell are anticipated to capture approximately 21%.AMD’s stocks have declined by 34% over the past year as investor confidence wanes regarding its capacity to compete effectively in the AI sector against NVIDIA and specialized chip manufacturers, amidst concerns about sustaining growth in the personal computing realm.

For NVIDIA’s fiscal fourth quarter, which concluded in January, Mizuho forecasts that the company can amass $37.5 billion in revenue with an adjusted earnings per share (EPS) of $0.83. Due to the anticipated delay in the Blackwell rollout, the firm has adjusted its fiscal year 2026 Q1 revenue estimate down by $700 million to $41.1 billion and slightly reduced its EPS estimate by two cents to $0.89 per share.

Looking ahead to NVIDIA’s current fiscal year, concluding in January 2026, Mizuho has increased its revenue prediction to $196 billion, a notable rise from the previous estimate of $189 billion.

Source & Images