Nvidia’s Growth Prospects and Market Performance
Nvidia (NASDAQ: NVDA) is projected to generate $213 billion in revenue by the end of fiscal year 2026, marking a 63% increase year-over-year. Analyst estimates predict earnings per share of $4.69 for the current fiscal year, with a potential rise to $7.46 per share in fiscal year 2027. These figures are underpinned by a massive backlog of $500 billion worth of orders for AI chips through 2025 and 2026, primarily from its data center business.
Despite recent share price fluctuations, which have dropped 9.7% since November, Nvidia’s data center segment accounted for $167 billion in revenue last year, with expectations of $58 billion in sales for the current quarter alone. The company is expected to maintain a gross margin in the mid-70% range, further bolstering its profitability.
