Jensen Huang stated in his speech that the company has visibility on achieving cumulative data center revenue of USD 500 billion for 2025-2026. This revenue forecast is 12% higher than the Wall Street consensus expectation of USD 447 billion and 10% higher than Goldman Sachs' own estimate of USD 453 billion. Goldman Sachs views this guidance as an incremental positive for NVIDIA's stock price and indicated that there is room for further upward revision in its own forecasts.
Author of this article: Long Yue
Source: Hard AI
NVIDIA delivered a very strong revenue signal at the latest GTC conference, prompting a positive interpretation from Wall Street.
On October 28, NVIDIA CEO Jensen Huang revealed at the GTC conference that the company has 'visibility' on achieving cumulative data center business revenue of $500 billion between 2025 and 2026. This revenue projection will encompass its Blackwell and next-generation Rubin architecture products.
Goldman Sachs’ latest research report emphasized that the $500 billion figure is significantly higher than previous market expectations. The bank's analysts noted that this target is 12% higher than the $447 billion consensus reflected through Visible Alpha Consensus Data and 10% above Goldman Sachs’ own forecast of $453 billion.
Goldman Sachs believes that this enhanced visibility into long-term revenue represents an 'incrementally positive factor' for NVIDIA’s stock price and reiterated its 'Buy' rating.
The bank’s analysts highlighted in the report that although their forecasts for NVIDIA’s fiscal year 2026 are already about 7% higher than market consensus, based on the latest management commentary, they believe there is still a 'tendency for further upward revision' to their estimates.
Revenue guidance far exceeds expectations, with Goldman Sachs optimistic about upside potential
The cumulative revenue target of $500 billion presented by NVIDIA’s management is the strongest market signal conveyed during this GTC conference. The report further analyzed that several key variables could drive NVIDIA’s performance beyond current expectations.
These factors include: the specific timing of model deployments by major clients such as OpenAI, the increasing contributions from non-traditional customers like sovereign governments, and the exact launch timing of the highly anticipated Rubin platform. All of these could serve as catalysts for Goldman Sachs and the broader market to further adjust their financial models upward.
Strategic partnerships are flourishing, expanding the AI ecosystem footprint.
In addition to its astonishing revenue guidance, NVIDIA also announced a series of strategic collaborations at the GTC conference aimed at solidifying its leadership position in the AI ecosystem.
According to a Goldman Sachs report, NVIDIA announced a $1 billion equity investment in Nokia at a subscription price of $6.01 per share. This move aims to accelerate the development and deployment of next-generation AI-native mobile networks and related infrastructure. Meanwhile, NVIDIA also unveiled its ARC Aerial RAN computing platform.
In the high-performance computing sector, NVIDIA announced a collaboration with the U.S. Department of Energy to deploy seven new supercomputer systems at its Argonne National Laboratory and Los Alamos National Laboratory. Among them, the Solstice and Equinox systems will be equipped with 100,000 and 10,000 NVIDIA Blackwell GPUs, respectively. The Los Alamos National Laboratory has also confirmed the selection of NVIDIA's Vera Rubin platform to build its next-generation system.
Additionally, the company introduced NVQLink, a high-speed interconnect technology designed to bridge quantum computers with traditional computing systems, and announced a partnership with Uber Technologies to jointly expand Uber’s Level 4 autonomous driving network using the Nvidia DRIVE AGX Hyperion 10 platform and DRIVE AV software.
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