Nvidia on Track to Unlock $500 Billion Revenue Stream

Morgan Stanley has delivered a bullish message for Nvidia stock investors, estimating that the company's push into AI infrastructure financing could create a massive recurring revenue stream worth $500 billion.

The brokerage firm believes that Nvidia's involvement with major financial firms such as Apollo, BlackRock, and Goldman Sachs in supporting investments in neocloud providers will make computing capacity a more predictable revenue opportunity.

Morgan Stanley analysts estimate that the four largest U.S. hyperscalers could deploy about 25 gigawatts of computing capacity in 2027, excluding Tensor Processing Units. This would produce roughly $500 billion in annual revenue at $20 million per megawatt, they estimated.

If Nvidia captured 25% of this revenue at full margins, its fiscal 2028 operating profit could rise by 60%, according to Morgan Stanley.