After a strong rally, Nvidia (NVDA) stock has cooled off and has seen a period of consolidation. However, recent commentary from CEO Jensen Huang suggests that underlying business momentum remains robust.
At the company’s recent GTC (GPU Technology Conference), its big AI-centric conference for developers, Huang emphasized that demand for Nvidia’s GPUs is “off the charts.” As enterprises and governments accelerate their adoption of AI capabilities, the need for high-performance computing continues to expand, strengthening Nvidia’s dominant position within this ecosystem.
Nvidia has significantly raised its projections for its next-generation chip platforms, Blackwell and Rubin. After estimating roughly $500 billion in GPU demand tied to these platforms last year, the company now expects cumulative demand and purchase commitments to exceed $1 trillion through 2027.
With demand remaining strong and growth expected to continue over the coming quarters, Nvidia could deliver strong financials in fiscal 2027 and beyond, which could support upward movement in its stock.
Nvidia’s growth outlook remains strong, supported by sustained demand for its AI chips, particularly within its data center segment. In fiscal 2026, the company’s data center business generated $194 billion in revenue, representing a 68% year-over-year (YoY) increase. Management anticipates continued momentum and projects sequential revenue growth throughout calendar year 2026. Nvidia has also secured sufficient inventory and supply commitments to meet future demand, with shipment visibility extending into calendar year 2027.
Next-gen products continue to play a key role in Nvidia’s growth. Ongoing strength in Nvidia’s Blackwell and Blackwell Ultra platforms is expected to drive future growth. At the same time, robust demand for Nvidia’s AI infrastructure could continue to support demand for its Hopper-based products, reflecting broad-based adoption across multiple product generations.
Networking has emerged as another key growth driver within the data center segment. In fiscal 2026, Nvidia’s networking business exceeded $31 billion in revenue. Adoption of solutions such as NVLink, Spectrum-X Ethernet, and InfiniBand remains strong, strengthening the company’s position in high-performance computing and AI networking infrastructure.
