Nvidia Dominates AI Accelerator Market, Tops Semiconductor Stock Picks
Nvidia is my top pick heading into 2027, according to an expert who has covered semiconductor stocks for five years. The company's dominance in the artificial intelligence (AI) accelerator market is a key factor in its success.
Nvidia's revenue soared 106% year over year to $96.2 billion in the second quarter of fiscal 2027, and management now expects revenue to grow by around 70% year over year in fiscal 2028.
The company's growth is impressive for its size, with Nvidia guiding for third-quarter revenue of $108 billion, plus or minus 2%, implying year-over-year growth of roughly 89% at the midpoint. Additionally, Nvidia's longer-term growth outlook is also limited by supply rather than demand, with management stating that fiscal 2028 revenue outlook is supply-constrained and customer forecasts indicate even faster growth.