Nvidia expects to make US$1 trillion from AI chips through 2027

Despite their success, Nvidia is facing mounting competition from rivals, as well as its own customers attempting to produce in-house chips to handle AI. Photo by Benjamin Fanjoy/Getty ImagesArticle contentNvidia Corp., the company at the centre of an explosive build-out of AI computing, expects to generate at least US$1 trillion from its Blackwell and Rubin chips through the end of 2027.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe company had previously forecast that the chips would bring US$500 billion in sales by the end of 2026. The latest forecast, delivered by chief executive Jensen Huang during the company’s GTC event, extends the outlook another year.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe forecast underscores the scale of Nvidia’s business, which has been supercharged by demand for chips that develop and run AI models. But the cumulative figure doesn’t suggest a tremendous acceleration in sales growth.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentAfter initially rising as much as 4.8 per cent, the shares soon pared their gains on Monday.Article contentNvidia also unveiled new products at GTC, an annual gathering in San Jose, California. It’s adding a chip made with technology it acquired from startup Groq, a move that it says will boost the responsiveness of artificial intelligence systems.Article contentThe company also showed off a computer made up of general-purpose CPUs, or central processing units, marking a fresh expansion into technology pioneered by Intel Corp. The CPU opportunity is “for sure” a multibillion-dollar business, Huang said.Article contentThe GTC rollout is Nvidia’s latest bid to promote artificial intelligence computing and keep customers loyal to its technology. The company uses the event to announce partnerships with companies in a range of industries, aiming to show the increasing benefits of AI.Article contentArticle contentA flood of spending on AI chips has turned Nvidia into the world’s most valuable company. But investors have sought more evidence that the market’s growth remains on track. Nvidia is also facing mounting competition from rivals like Advanced Micro Devices Inc., as well as its own customers attempting to produce in-house chips to handle AI.Article contentRead More Constellation Software 'well-positioned' against AI disruption, CEO says The algorithm is not your lawyer: the limits (and dangers) of AI tools Article contentThe company has accelerated its technology development in recent years. Nvidia tries to replace its entire product lineup on an annual basis while adding new components. The next design of its flagship AI processors, appearing in systems in the second half of 2026, is called Vera Rubin. The lineup is named for the pioneering astronomer whose observations provided evidence supporting the existence of dark matter.Article contentWhile Nvidia continues to post sales growth that’s the envy of the chip industry, its stock rally has stalled in recent months. The shares were down 3.4 per cent this year heading into the GTC presentation, leaving the company’s market value at a still-unrivalled US$4.4 trillion.Article content—With assistance from Maggie Eastland and Dina Bass.Article contentBloomberg.comArticle contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentTrending Subscriber only.

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The United States is losing its grip on Canada's steel market Subscriber only Commodities Posthaste: Even Americans are getting fed up with Donald Trump's tariffs News Saint John's port is booming as Ontario shippers seek to dodge U.S. tariffs Economy Bank of Canada expected to hold interest rates as nation faces trade uncertainty, global conflict Economy Canada mulls joining U.K.-led response force as its military grows PMN Business