S&P Upgrades Nvidia to AA, Forecasts 82% Revenue Surge
NVDA•S&P raised Nvidia's long-term issuer rating to AA from AA- and forecasts 82% revenue growth to $394B in fiscal 2027 and 38% to $544B in 2028. It projects free cash flow of $196B in 2027 and $276B in 2028, supports an $80B buyback and dividend while warning of supplier risks.
1. Credit Rating Upgrade
S&P raised Nvidia's long-term issuer credit rating from AA- to AA, citing the company's sustainable competitive advantage and surging market demand for AI systems.
2. Growth Forecasts
The agency projects Nvidia's revenue will jump 82% to $394 billion in fiscal 2027 and a further 38% to $544 billion in 2028, driven by the transition to its Blackwell GPU platform and roadmap for Rubin architecture.
3. Cash Flow and Returns
Rising operating margins and low capital intensity are expected to lift free operating cash flow to $196 billion in 2027 and $276 billion in 2028, underpinning an enhanced $80 billion share repurchase plan and increased dividend payouts.
4. Risk Factors
S&P flagged material risks from Nvidia's heavy supplier and geographic concentration with TSMC in Taiwan and noted potential capital market tightening and power supply constraints for AI data centers.
