Nvidia Projects Over $1 Trillion AI Revenue, Plans 50% FCF Buybacks
Nvidia now expects to close, book and ship over $1 trillion in AI-related business through 2027, extending its previous data center revenue forecast and incorporating adjacent products. The company plans to direct about 50% of free cash flow toward share buybacks and dividends once current investment commitments are completed.
1. Management Extends AI Revenue Forecast
CEO Jensen Huang said Nvidia now expects to close, book and ship more than $1 trillion in AI-related sales through 2027, extending its prior $500 billion data center revenue target by one year. This outlook reflects strong confidence in sustained demand for flagship AI processors and expanded workloads.
2. Broadening Product Portfolio
Nvidia is expanding beyond GPUs into CPUs, SRAM-based LPX systems and semiconductors acquired from Groq, as well as exploring data center chips for orbital applications. The company’s Vera Rubin platform, integrating GPUs, CPUs, LPUs and DPUs, reached full production with partner availability slated for late 2026.
3. Capital Allocation Plan
On capital allocation, CFO Colette Kress indicated Nvidia plans to direct roughly 50% of free cash flow toward share buybacks and dividends once investment commitments are fulfilled. This shift aims to enhance shareholder returns during the company’s next growth phase.
4. Analyst Support and Price Targets
Bank of America and Baird analysts maintained bullish ratings with $300 price targets, citing improved tokenomics across AI tiers and over $1 trillion in cumulative purchase orders for Blackwell and Rubin platforms. Both firms highlighted potential TAM expansion of up to 50% from new LPX and CPU offerings.