Nvidia targets $1T in AI chip revenue by 2027, plans dividend growth

Nvidia CEO Jensen Huang has laid out a revenue target that makes Wall Street’s already bullish estimates look conservative: at least $1 trillion in AI chip revenue through 2027. That figure, driven by sales of the company’s Blackwell and Vera Rubin platforms, represents a dramatic upward revision from the roughly $500 billion the company previously projected through 2026.

To put the gap in perspective, equity analysts currently forecast Nvidia’s fiscal year 2027 revenue at around $367 billion.

The numbers behind the ambition

Nvidia’s fiscal year 2025 revenue hit $215.9 billion, a 65% jump year-over-year fueled almost entirely by insatiable demand for AI training and inference hardware. The company’s market capitalization has already crossed the $2 trillion threshold.

The $1 trillion figure refers to cumulative AI chip revenue, not a single-year target or equity valuation milestone. It means Nvidia is betting that the combined sales of its current and next-generation chips, Blackwell today, Vera Rubin on the horizon, will generate at least $1 trillion in aggregate orders by the end of 2027.

Alongside the revenue target, Nvidia has signaled plans for regular dividend growth, continued heavy investment in research and development, and efforts to secure the supply chain capacity needed to actually deliver at that scale.

Why the gap between Nvidia and Wall Street

The chasm between Huang’s $1 trillion projection and analysts’ $367 billion FY2027 estimate tells you something important about how differently the company and the Street view the trajectory of AI infrastructure spending.

The previous forecast revision, from roughly $500 billion through 2026 to $1 trillion through 2027, is a doubling.

What this means for investors

The dividend growth commitment is worth noting. Nvidia has historically been a growth stock, not a dividend play. Signaling regular dividend increases suggests the company believes its cash generation will be robust enough to reward shareholders directly while still plowing billions into R&D and supply chain buildout.

Competition is the variable worth watching most closely. Hyperscalers like Google, Amazon, and Microsoft are all investing in custom AI chips designed to reduce their dependence on Nvidia. AMD’s MI300 series is gaining traction.

Nvidia relies heavily on TSMC for advanced chip manufacturing. Any disruption to that relationship, whether from geopolitical tension, capacity constraints, or pricing disputes, could cap Nvidia’s ability to deliver even if demand materializes at the levels Huang expects.

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