NVIDIA CEO Predicts $1T Revenue by 2027 at GTC Conference

Key Insights

• NVIDIA stock price wavered despite Jensen Huang’s rosy prediction.
• Jensen Huang now believes the company will reach $1 trillion in revenue by 2027.
• The stock may have a strong bearish breakdown if it falls below the head-and-shoulders neckline.

It’s a big week for the technology industry, and the NVIDIA stock price remains in a deep slumber. The stock rose by 1.5% on Monday and was barely moved in the pre-market session today, March 17, despite the rosy predictions by Jensen Huang at the GTC Conference.

In his statement at the prestigious GPU Technology Conference (GTC), Huang, the company’s founder and Chief Executive, noted that he was seeing unprecedented demand for its GPUs as the AI data centers continued rising.

He believes that the company’s GPUs will generate over $1 trillion in sales through 2027. This growth will be driven by its existing products, including Blackwell and Rubin chips.

It will also be driven by its upcoming central processing units (CPUs) and other technologies, including those developed through its collaboration with Groq, a company it acquired in a $17 billion deal.

NVIDIA also plans to launch more products in the coming years. For example, it plans to launch Vera Rubin in the second half of this year. It also plans to launch Feynan with customized high-bandwidth memory in the coming year.

Analysts tracking the company believe its business has room to grow further. It made $215 billion in revenue last year, a figure expected to jump to $367 billion this year. These analysts see the revenue soaring to $468 billion in the next financial year.

NVIDIA’s numbers will likely be better than those of these analysts. For one, it has a long record of doing better than analysts’ estimates. Also, these estimates don’t include its CPU business and the potential for Chinese sales, which ended mid-last year.

In addition to product launches, the company is banking on partnerships to help this revenue and profitability growth. For example, the company launched new partnerships with companies like IBM, Uber, and Adobe.

The GTC event comes at a time when companies are boosting data center spending amid rising demand. For example, the top four technology companies in the United States, like Meta Platforms and Microsoft, have pledged to spend as much as $650 billion in capital expenditure this year.

In addition to these companies, more smaller and faster-growing firms are growing and spending billions of dollars in capital expenditure. For example, CoreWeave, a company that NVIDIA has invested in, has a backlog of over $55 billion and is spending billions buying NVIDIA GPUs.

Nebius, another firm that NVIDIA invested in last week, received a $27 billion order from Meta Platforms. Other companies like IREN, TeraWulf, and Bitfarms have boosted their data center spending. Most importantly, other companies, especially those in the Bitcoin mining industry like Riot and Mara Holdings are also entering the industry and making substantial NVIDIA orders.

Analysts are still highly bullish on NVIDIA stock despite the ongoing weakness. Data compiled by MarketBeat shows that most analysts have a buy rating on the company, with the average estimate being $274, up by 50% from the current level.

The most bullish analysts are from UBS, Tigress Capital, Loop Capital, and Melius Research, who have an estimate of over $350.

On the daily chart, NVDA stock continues to compress in a narrow range this year. As a result, the stock remains at the 50-day and 100-day Exponential Moving Averages (EMA).

The main risk is that the stock has formed a head-and-shoulders pattern, a common bearish reversal sign. This neckline is shown by the ascending trendline, which connects the lowest levels since September 5 last year.

Therefore, while the stock may rebound and move to a record high, there is a risk that it may have a strong bearish breakdown in the coming weeks, potentially to the psychological level at $150. This outlook will be invalidated if it moves above the key resistance level at $197.

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