Nvidia (NASDAQ:) is shifting its focus to the next phase of AI, betting that inference demand, not just training, will drive its path toward a $1 trillion revenue opportunity, even as competition from rivals and in-house chips intensifies.
At the company’s largest annual event, Nvidia CEO Jensen Huang unveiled a slate of new products and forecast that Nvidia’s flagship AI processors will drive $1 trillion in revenue by 2027. In a 2½-hour keynote, he announced moves into CPUs, treading on Intel’s ground, introduced chips using Groq technology, and revealed plans for data-center processors designed for use in space.
Huang emphasized surging demand for compute, saying it has grown “a million times” in two years and argued Nvidia is uniquely positioned to meet that skyrocketing need.
Key highlights:
- Huang forecasts Nvidia’s AI processors could drive $1 trillion in revenue by 2027.
- New hardware: Groq 3 LPU (language-processing coprocessor), Rubin and upcoming Feynman-class chips, plus expanded CPU push with Vera and all-CPU systems.
- Partnerships/customers broaden (IBM, HPE, Adobe, Uber); Samsung to fab Groq-based 4nm chips and announced HBM4E memory.
- Strategy: sell complete systems, open-source models/software, and enter new markets, including data‑center CPUs and space-based data centers.
- Market reaction: shares ticked up then retraced; investors remain cautious amid rising competition from AMD and customers developing in‑house chips.
4 Highlights from the GTC Keynote
A Trillion dollars: Last year at GTC, Huang forecast Nvidia’s data-center hardware would net $500 billion across 2025–26; this year, he raised that target to $1 trillion for 2025–27. In the past 12 months, data-center sales hit $192 billion, up 66% year over year.
A complete platform: In his 140-minute keynote, Huang opened with CUDA — free software that complements Nvidia’s premium hardware — and spent most of the talk on the AI models, tools, and services Nvidia offers, much of them free. Nvidia is positioning itself as more than a chipmaker: it is selling a full ecosystem around its hardware, akin to Apple’s integrated approach.
Still a chip company: Nvidia struck a costly licensing deal with Groq last year for AI chips optimized for models like chatbots and coding assistants, and at GTC showed how Groq’s processors will operate alongside Nvidia’s in data centers.
Inference took center stage: Huang said the word 36 times. Nvidia may have won the training era, but its edge in inference is less certain; the keynote aimed to signal Nvidia’s bid to dominate that next phase.
Stock Price Reaction:
NVIDIA shares rose Monday as Huang wrapped the GTC keynote, closing up 1.6% at $183.19. The stock spiked to an intraday high of $188.88 (about +2.8%) after Huang forecast Nvidia’s AI hardware would generate $1 trillion by 2027, then eased back but still finished the day higher.
Technical Analysis Perspective:
- NVDA is trading inside rectangle like formation, ranging between 196 – 183.50 171.50 since December 2025.
- Mid-point 183.50 is acting as magnet both ways.
- Prices rejected 189 high yesterday to pull back to the magnet.
- A decline to 175 – 171.50 is at hand as long as 183.50 contains gains.
- A strong rally above 189 would eye 195 – 196 barriers.
Daily Candlestick Chart
NVDA Seasonality Chart:
Since 2007, NVDA has seen March close with 2.6% rise in 55% of years and April with a 0.8% rise in 58% of years.
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Ali Merchant is a seasoned financial market professional with expertise in Technical Analysis, Treasury & Capital Markets, Trading, Sales, Research, Training, Fund & Relationship Management, Fintech, and Digitalization. He is a CMT charter holder and an active member of CMT Association, USA, American Association of Professional Technical Analysts, and CMT Association of Canada. He has worked on various roles and organizations in North America and the GCC, such as ABN Amro bank, Thomson Reuters, Refinitiv, MAK Allen & Day Capital Partners, and Bridge Information Systems.
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