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Nvidia's AI Chip Demand Could Blast Past $500 Billion Target As Stock Jumps 5%

MarketDash Editorial Team
18 days ago
Nvidia isn't just meeting its ambitious revenue targets—it's likely to exceed them. The chipmaker says surging demand for Blackwell and Rubin AI chips could push total sales past $500 billion as it posted another record-breaking quarter and watched its stock surge in after-hours trading.

When you're already projecting half a trillion dollars in revenue and your CFO says the number will probably go higher, you're doing something right. That's where Nvidia Corp. (NVDA) finds itself after posting another blowout quarter on Wednesday.

The $500 Billion Question Gets An Even Bigger Answer

During the earnings call, Morgan Stanley analyst Joseph Moore wanted clarity on Nvidia's ambitious roadmap. At the company's GTC conference, management had projected $500 billion in cumulative revenue for its Blackwell and Rubin chip platforms through calendar year 2026. With roughly $150 billion already shipped, that left about $350 billion to go over the next 14 months.

Moore's question was straightforward: Are you still on track, and could growing demand push that total even higher?

CFO Colette Kress didn't hedge. "We are on track for that as we have finished some of the quarters... The number will grow," she said. Translation: not only are we hitting the target, we're probably going to exceed it.

Kress pointed to "additional needs for compute" ready to ship by fiscal 2026, noting that Nvidia shipped $50 billion just this quarter. "But we would be not finished if we didn't say that we'll probably be taking more orders," she added.

Fresh Mega-Deals Keep Stacking Up

The upside isn't just theoretical—Nvidia has concrete deals backing up the optimism. Kress highlighted a newly announced partnership with Saudi Arabia involving 400,000 to 600,000 additional GPUs over the next three years. She also pointed to ongoing large-scale orders from Anthropic.

"So there's definitely an opportunity for us to have more on top of the $500 billion that we announced," Kress said.

When your baseline scenario is half a trillion dollars and you're casually discussing upside beyond that, you know demand isn't slowing down.

Another Quarter, Another Beat

Nvidia posted third-quarter revenue of $57.0 billion, up 62% from last year and comfortably ahead of Wall Street's $54.88 billion consensus. Earnings came in at $1.30 per share, beating the $1.25 estimate.

This marks the 12th consecutive quarter that Nvidia has topped expectations on both revenue and earnings—a streak that's starting to look routine. The quarter also set a new all-time sales record for the company.

Investors liked what they heard. Nvidia closed Wednesday at $186.52, up 2.85%, then climbed another 5.08% in after-hours trading to $196. With a market cap of $4.53 trillion, the chipmaker now ranks in the 98th percentile for Growth and 92nd percentile for Quality among its sector peers.

The AI chip race isn't slowing down, and right now, Nvidia is lapping the field.

Back to News

Nvidia's AI Chip Demand Could Blast Past $500 Billion Target As Stock Jumps 5%

MarketDash Editorial Team
18 days ago
Nvidia isn't just meeting its ambitious revenue targets—it's likely to exceed them. The chipmaker says surging demand for Blackwell and Rubin AI chips could push total sales past $500 billion as it posted another record-breaking quarter and watched its stock surge in after-hours trading.

When you're already projecting half a trillion dollars in revenue and your CFO says the number will probably go higher, you're doing something right. That's where Nvidia Corp. (NVDA) finds itself after posting another blowout quarter on Wednesday.

The $500 Billion Question Gets An Even Bigger Answer

During the earnings call, Morgan Stanley analyst Joseph Moore wanted clarity on Nvidia's ambitious roadmap. At the company's GTC conference, management had projected $500 billion in cumulative revenue for its Blackwell and Rubin chip platforms through calendar year 2026. With roughly $150 billion already shipped, that left about $350 billion to go over the next 14 months.

Moore's question was straightforward: Are you still on track, and could growing demand push that total even higher?

CFO Colette Kress didn't hedge. "We are on track for that as we have finished some of the quarters... The number will grow," she said. Translation: not only are we hitting the target, we're probably going to exceed it.

Kress pointed to "additional needs for compute" ready to ship by fiscal 2026, noting that Nvidia shipped $50 billion just this quarter. "But we would be not finished if we didn't say that we'll probably be taking more orders," she added.

Fresh Mega-Deals Keep Stacking Up

The upside isn't just theoretical—Nvidia has concrete deals backing up the optimism. Kress highlighted a newly announced partnership with Saudi Arabia involving 400,000 to 600,000 additional GPUs over the next three years. She also pointed to ongoing large-scale orders from Anthropic.

"So there's definitely an opportunity for us to have more on top of the $500 billion that we announced," Kress said.

When your baseline scenario is half a trillion dollars and you're casually discussing upside beyond that, you know demand isn't slowing down.

Another Quarter, Another Beat

Nvidia posted third-quarter revenue of $57.0 billion, up 62% from last year and comfortably ahead of Wall Street's $54.88 billion consensus. Earnings came in at $1.30 per share, beating the $1.25 estimate.

This marks the 12th consecutive quarter that Nvidia has topped expectations on both revenue and earnings—a streak that's starting to look routine. The quarter also set a new all-time sales record for the company.

Investors liked what they heard. Nvidia closed Wednesday at $186.52, up 2.85%, then climbed another 5.08% in after-hours trading to $196. With a market cap of $4.53 trillion, the chipmaker now ranks in the 98th percentile for Growth and 92nd percentile for Quality among its sector peers.

The AI chip race isn't slowing down, and right now, Nvidia is lapping the field.