Nvidia's Jensen Huang Foresees $1 Trillion in Combined Sales for Blackwell and Vera Rubin Through 2027 -- but This Is Only Half the Story

By Sean Williams – Apr 10, 2026 at 8:06AM ESTKey PointsAI is Wall Street's hottest investment trend, with Nvidia's graphics processing units (GPUs) leading the charge.Nvidia's CEO, Jensen Huang, expects the company's two newest GPUs to generate a baseline of $1 trillion in sales through 2027. However, increasing internal competition, coupled with Taiwan Semiconductor expanding its production capacity, is a possible recipe for Nvidia's sales and margins to diverge.Arguably, no game-changing innovation has captured the attention and capital of investors quite like the evolution of artificial intelligence (AI). Empowering software and systems with the tools to make split-second decisions sans human oversight is a multitrillion-dollar addressable opportunity. Among the laundry list of public companies benefiting from the artificial intelligence revolution is graphics processing unit (GPU) kingpin, Nvidia (NVDA +0.99%). Nvidia has added approximately $4 trillion in market value since the start of 2023 on the heels of its GPU dominance in AI-accelerated data centers. Image source: Getty Images. But it's not looking in the rearview mirror that has Wall Street and investors excited. It's recent commentary from CEO Jensen Huang that's raising eyebrows. The only problem is that Huang's trillion-dollar forecast may not tell the full story. The "t" word has entered the picture At Nvidia's annual GPU Technology Conference (GTC) in mid-March, the company's billionaire boss outlined a sales forecast for its two most-advanced GPUs, Blackwell and Vera Rubin (the latter of which debuts later this year), containing the "t" word... trillion. Said Huang, I'm here to tell you that right now, where I stand -- a few short months after GTC DC, one year after last GTC -- right where I stand, I see through 2027, at least $1 trillion. Baseline combined sales of $1 trillion for Blackwell and Vera Rubin would be jaw-dropping. It would solidify Nvidia's AI hardware as the undisputed top choice by businesses in enterprise data centers. ExpandNASDAQ: NVDANvidiaToday's Change(0.99%) $1.81Current Price$183.89Key Data PointsMarket Cap$4.5TDay's Range$180.63 - $184.0852wk Range$95.04 - $212.19Volume35KAvg Vol179MGross Margin71.07%Dividend Yield0.02% Furthermore, this $1 trillion estimate demonstrates the often-overlooked importance of the CUDA software platform. This is the toolkit developers use to maximize the compute capabilities of their Nvidia GPUs, including the building and training of large language models. But while this $1 trillion Blackwell-Rubin sales forecast likely has investors seeing dollar signs, it may only be telling half the story. Internal competition may weigh on Nvidia's gross margin Inevitably, Nvidia is going to face increased GPU competition. However, its biggest competitive risk might come from within. Many of the company's largest customers by net sales are currently developing GPUs and solutions to use in their data centers. Even though these internally developed chips are several rungs of the ladder below Nvidia's hardware, they do have the advantage of being notably cheaper and more readily available. Compounding this increase in internal competition is the reality that world-leading chip fabricator, Taiwan Semiconductor Manufacturing, is steadily expanding its monthly chip-on-wafer-on-substrate (CoWoS) capacity. NVDA Gross Profit Margin (Quarterly) data by YCharts. One of Nvidia's foundational catalysts has been persist GPU scarcity. While its GPUs maintaining compute superiority has helped with its pricing power and gross margin, GPU demand handily outstripping supply has been even more important.

With Taiwan Semi rapidly expanding its monthly CoWoS wafer capacity, and Nvidia's customers intent on deploying internally developed chips in their data centers, the GPU scarcity that's fueled Nvidia's pricing power will likely wane over time. Taiwan Semi's ability to handle more GPU output can help facilitate Huang's prognostication of $1 trillion in combined sales for Blackwell and Vera Rubin through 2027. But at the same time, Nvidia's gross margin may erode as GPU scarcity fades. In other words, Huang's trillion-dollar forecast is only half the story.Read NextApr 10, 2026 •By Keithen Drury3 Stocks Billionaires Are Buying That You Should TooApr 10, 2026 •By Jose NajarroIs This an Early Sign of the AI Bubble Popping?Apr 9, 2026 •By Jeremy Bowman5 Best Artificial Intelligence (AI) ETFs to Buy in 2026Apr 9, 2026 •By Keithen Drury4 Reasons Why Nvidia Is the Best AI Stock to Buy in 2026Apr 9, 2026 •By Danny Vena, CPANvidia's Stock Price Should Be 400% Higher: AnalystApr 9, 2026 •By Chris NeigerThe Great Repricing Is Creating Generational Opportunities in Agentic AI Growth StocksAbout the AuthorSean Williams is a data-driven Motley Fool contributing analyst who's been investing for 27 years and has penned north of 15,000 articles. You'll find him at the intersection of politics and investing tackling macroeconomic topics of interest (Social Security and Donald Trump's economic/tax policies), analyzing which stocks billionaire investors (e.g., Warren Buffett) are buying and selling, and digging into how the world's most-influential businesses and trends -- everything from the evolution of artificial intelligence (AI) to the next stock split -- are changing Wall Street. He holds a B.A. in Economics from the University of California, San Diego.TMFUltraLongX@AMCScamStocks MentionedNvidiaNASDAQ: NVDA$183.89(+0.99%)+$1.81Taiwan Semiconductor ManufacturingNYSE: TSM$365.15(-0.20%)-$0.75*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.