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Nvidia’s AI Processors Become Industry Benchmark as Revenue Projected to Approach $500 Billion by 2026

Nvidia’s AI Processors Become Industry Benchmark as Revenue Projected to Approach $500 Billion by 2026

Bitget-RWA2025/11/20 00:42
By:Bitget-RWA

- Nvidia CEO Jensen Huang forecasts $500B in AI-driven revenue by 2026, positioning the company as a top U.S. corporate revenue leader. - Q3 2026 results showed $57B revenue (62% YoY growth), with data center sales ($51.2B) accounting for 89% of total revenue. - Strategic partnerships in the U.S. and Middle East, including 70,000 AI chips for UAE/Saudi and a $1B Oracle investment, expand Nvidia's AI infrastructure dominance. - Analysts project 40%+ annual earnings growth through 2027, though risks include

Nvidia Corp. (NVDA) has emerged as a leader in the artificial intelligence sector, with CEO Jensen Huang stating the company anticipates "up to $500 billion in revenue" by 2026 from its Blackwell and Rubin GPU product lines

. Should these estimates come to fruition, would rank among the top revenue-generating companies in the United States, overtaking many established giants. Following its fiscal Q3 2026 results, the stock climbed 6% to $198 per share, as the report showed and a record $51.2 billion in data center earnings.

The data center division, fueled by overwhelming demand for Blackwell GPUs, made up 89% of total sales. Compute-related revenue reached $43 billion, while

to $8.2 billion, driven by the adoption of NVLink fabric in GB200 and GB300 platforms.
Nvidia’s AI Processors Become Industry Benchmark as Revenue Projected to Approach $500 Billion by 2026 image 0
. Huang highlighted a "positive feedback loop in AI," as across various sectors and regions. UBS and DA Davidson analysts share this bullish outlook, through 2027, with price targets between $230 and $275, suggesting a potential 28%–50% rise.

Nvidia's strong gross margins have further strengthened investor trust. Even with higher production costs,

, and management expects them to reach 74.8%–75% in Q4 as Blackwell output ramps up. This matches Bank of America's revised sales forecast, now estimating $208.48 billion in revenue for 2026, . Nonetheless, there are challenges ahead, such as export restrictions to China and rivalry from AMD and Intel.

Strategic alliances are expanding Nvidia's AI infrastructure reach.

for UAE's G42 and Saudi Arabia's Humain, supporting these countries in developing AI centers. At the same time, Humain has teamed up with Amazon Web Services and to roll out 150,000 accelerators in Saudi Arabia's "AI Zone," including 35,000 GB300 GPUs . In addition, Nvidia and Nokia have introduced AI-driven 5G-Advanced and 6G networks, while supercomputer—which features 100,000 Blackwell GPUs—demonstrates Nvidia's strength in high-performance computing.

Although some question the company's valuation, analysts believe Nvidia's rapid expansion supports its 27x 2026 price-to-earnings ratio.

as the highest since early 2024, and Wedbush reaffirmed its "outperform" rating with a $210 price target . Even skeptics admit Nvidia's installed hardware is "fully utilized," and "cloud providers have sold out" of available GPU resources .

Nvidia's rise mirrors larger economic shifts:

from less than $30 billion annually before 2023 to over $200 billion today. As the U.S. and Middle Eastern countries compete for AI dominance, Nvidia's Blackwell and Rubin processors are becoming the industry standard for both training and inference, securing its place at the center of the next technological wave.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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