It has been nearly three years since the AI wave swept the globe after OpenAI launched ChatGPT in November 2022. In this technological transformation, Nvidia (NVDA) has become one of the biggest beneficiaries, thanks to its absolute dominance in the AI chip sector. During this period, the company’s stock price achieved a staggering 1,323% surge, driven precisely by its graphics processing units (GPUs) widely used for AI model training and inference. Rapid revenue and profit growth fully demonstrate Nvidia’s deep integration with the AI industry.
As a barometer for the health of the AI industry, Nvidia holds an 85% to 90% share of the AI chip market. Therefore, the Q3 FY2026 earnings report, scheduled for November 19, is highly anticipated by analysts and investors, with the market expecting it to once again reveal the strong pulse of the AI industry.
Recent comments from CEO Jensen Huang have injected strong optimism into the upcoming earnings report. During the August earnings call, he clearly stated that the market size for AI infrastructure that Nvidia targets is as high as $3 to $4 trillion. The company plans to leverage its current-generation Blackwell GPUs and the next-generation Rubin data center GPUs to seize this historic opportunity. Huang emphasized that Nvidia has already embarked on the journey to fully capitalize on this opportunity and is currently merely at the “beginning of the build-out.” These words clearly indicate that Nvidia’s growth story is far from over.
Although the market expects Nvidia’s revenue to reach $207 billion this fiscal year, a 58% year-over-year increase, with growth potentially slowing to 33% next fiscal year, the trillions of dollars in infrastructure investment will likely help its performance exceed general market expectations.
Huang’s optimism about the market outlook is not unfounded. The robust demand for cloud AI workloads is evident from the massive order backlogs of cloud infrastructure providers. For instance, the order backlog at Oracle alone could be as high as $750 billion. As Oracle and other hyperscale cloud providers continue to ramp up their AI data center construction, Nvidia, as the leader in the AI chip market, undoubtedly has its steady growth strongly secured. Estimates suggest that approximately 60% of AI data center infrastructure spending will be used to purchase Nvidia’s chips and computing hardware.
Based on its projected market floor of $3 trillion, even facing challenges from competitors like Broadcom and AMD, Nvidia still has a potential market opportunity of at least $1.8 trillion over the next five years, indicating substantial room for growth.
Nvidia’s global business expansion is also accelerating. The company has reached agreements with South Korea’s Ministry of Science and ICT, as well as giants like Samsung Electronics and Hyundai Motor Group, to supply them with over 260,000 AI chips to support the construction of South Korea’s “sovereign AI” computing infrastructure. This deployment further solidifies its global influence.
More importantly, the company has demonstrated strong confidence in its future revenue. Huang recently revealed that Nvidia has “visibility” into achieving cumulative data center business revenue of $500 billion between 2025 and 2026. This forward-looking guidance has also received a positive market response. Goldman Sachs commented that this expectation provides an incremental positive factor for Nvidia’s stock price and reiterated its “Buy” rating.
