Nvidia on Track to Hit $1 Trillion Chip Sales Target

Nvidia's CEO Jensen Huang predicted that his company would collect $1 trillion in chip sales through 2027. The company is on pace to hit this target, with data center revenue growth reaching 92% year-over-year to $75 billion in the fiscal first quarter of 2027.

The majority of Nvidia's revenue comes from its data center segment, which made up about 90% of total revenue over the past year. The company's Blackwell chips have been a key driver of this growth, and it has also introduced new Rubin chips to meet increasing demand.

However, there are risks that could derail Nvidia's momentum, including supply constraints and competition from big cloud customers who are designing custom AI chips for their platforms. To address these challenges, Nvidia is striking partnerships with neocloud and sovereign customers.