Nvidia's Cloud Revenue May Have $30 Billion Upside: Barclays
Nvidia's revenue from top cloud providers may have more room to grow than previously thought, according to Barclays analysts. The firm highlighted a chart that suggests at least $30 billion of potential upside to Nvidia's hyperscaler revenue in both 2026 and 2027.
Barclays analyst Tom O'Malley used data from Nvidia to estimate the chipmaker's share of IT capital spending across the five largest cloud service providers. He assumed that cloud capital spending reaches about $1.1 trillion by 2027, with 80% going towards IT expenses.
O'Malley calculated that Nvidia's hyperscaler revenue could reach $237 billion in 2026 and $401 billion in 2027, compared to Barclays' current forecasts of $206 billion and $370 billion. In an upside scenario, he sees revenue reaching $246 billion and $417 billion in those years.
The analyst noted that Nvidia's hyperscaler revenue includes SpaceX, which is not included in the top five cloud provider figure. This would imply an even larger total than the calculation suggests.