Nvidia raises Blackwell and Rubin chip revenue forecast to $1T

In short: Nvidia’s CEO said the company now expects its Blackwell and Rubin AI chips to bring in at least $1 trillion in revenue by the end of 2027.

What happened

Nvidia CEO Jensen Huang shared the updated forecast during his keynote at the company’s GTC 2026 event on March 16. He said Blackwell and Rubin chips are now expected to generate at least $1 trillion in revenue by the end of 2027.

That is a big change from Nvidia’s earlier projection of $500 billion in sales by the end of 2026. Huang said demand for AI chips is growing fast, from both startups and large companies.

Huang also said that if Nvidia had more manufacturing capacity, customers could create more “tokens” and Nvidia could earn more. A token is a small piece of text that an AI model reads or writes, like words broken into bite sized pieces.

At the same event, Huang introduced a new chip line called the Nvidia Groq 3 Language Processing Unit, or LPU. Nvidia says it comes from its $20 billion acquisition of Groq in December, and that Groq 3 is expected to ship in Q3 2026. Nvidia positioned LPUs as a companion to GPUs, which are the chips commonly used to run AI.

Why it matters

AI chips are a core ingredient for many AI products, similar to how engines power cars. If Nvidia’s forecast is right, it suggests companies plan to spend heavily to run AI systems over the next two years, which can shape the cost and availability of AI services that people and businesses use.

Source: TechCrunch AI