Nvidia‘s CEO Jensen Huang stated AI chip revenue will reach at least $1 trillion by 2027 during his Nvidia GTC 2026 keynote. This number is up from last year’s prediction of $500 billion through this year.
The chipmaker chief highlighted the company’s ongoing strategy during his keynote address on the 16th of March.
While some industry experts predicted the AI bubble would burst last year, Huang sees even more revenue on the horizon. He stated several times Nvidia is horizontally open in the AI ecosystem but also vertically integrated into it. Huang also stated Nvidia is an algorithm company.
“Because our reach is so large and our install base is so large, we can reduce the computing cost, increasing the scale, increasing the speed for everybody continuously”, he explained.
He stated the AI sector is expanding beyond generative AI to agentic AI and inference. “This is the AI future. This is where AI wants to go”, Huang said. “It’s designed for inference, this one workload. And this workload is what drives AI factories”.
Analyst Jack Gold told Mobile World Live (MWL): “Nvidia is trying hard to reposition itself as the inference AI company, after it spent so much time being the premier training company over the past few years”.
“We estimate 80 per cent to 85 per cent of AI workloads will be inference in the next one to two years, so Nvidia must be a major player there”, Gold said.
Gold stated a complimentary issue to tackling inference is Nvidia won’t spend billions of dollars on AI training, but it is pushing the message the upcoming release of Vera Rubin chips and its AI factories are lowering the overall cost of tokens “even as the cost of those systems goes up”.
“Inference is a cost sensitive compute structure, just like cloud hosting is”, Gold said. “Promoting a message of even though our systems are expensive, we can enable you to generate lots more tokens, and hence more revenue, is a critical message for them going forward, particularly with competitors now making inroads”.
Source: Mobile World Live
Image Credit: Nvidia
