NVIDIA designs and manufactures graphics processing units (GPUs) and computing platforms used for gaming, data centers, and artificial intelligence. These products work by using parallel processing to handle complex mathematical calculations much faster than standard computer processors, supported by a software ecosystem that allows developers to build and run AI models. Unlike competitors that may focus solely on hardware, NVIDIA integrates its chips with specialized software and cloud services to create a complete environment for high-performance tasks. The company’s goal is to provide the underlying technology necessary to power advanced computing, from realistic video game graphics to autonomous vehicles and large-scale data analysis.
Company Size
10,001+
Company Stage
IPO
Headquarters
Santa Clara, California
Founded
1993
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Nvidia is approaching a $5.6 trillion market capitalisation, and analysts predict it could reach $10 trillion by the end of 2028. The company currently trades at 29.5 times trailing earnings and nearly 15 times next year's projected earnings. Nvidia more than doubled its revenue year over year in its most recent quarterly results. Management expects 70% revenue growth in the next fiscal year. Despite this outlook, analysts argue the stock remains relatively cheap compared to its growth trajectory. If Nvidia meets projections and the stock rallies to 30 times earnings by year-end, it could double in value within approximately two and a quarter years. The company's fiscal year ends in January 2028, positioning it to potentially breach the $10 trillion threshold before that date.
DBS Group Chief Investment Officer Hou Wey Fook told Bloomberg that AI-driven technology stocks are not in bubble territory, citing Nvidia's current valuation as evidence. Nvidia shares trade at 17 times forward earnings, far below Cisco Systems' 100 times valuation before the dot-com crash. Hou noted that analysts forecast Nvidia's earnings will grow approximately 70% in the coming year. He recommended investors pair technology holdings with investment-grade bonds yielding above 5% to control portfolio volatility. Nvidia closed at an all-time high on Friday, reaching a market value of around $5.7 trillion. The stock is up roughly 27% in 2026. The company reported record quarterly revenue of $81.6 billion, up 85% year-over-year, with data centre revenue of $75.2 billion, up 92%.
Nvidia's $500 billion financing plan is facing resistance from Wall Street lenders questioning the valuation of its AI chips used as loan collateral. Banks want Nvidia to guarantee more than the proposed 25% residual value or secure loans with payments from investment-grade customers. The main disagreement centres on chip lifespan. Nvidia claims its top GPUs can generate revenue for a decade, whilst banks typically depreciate them over three to four years. Banking sources told Reuters that Nvidia may need to guarantee all deals. Despite the financing dispute, Nvidia's business remains robust. The company reported $96 billion in revenue last quarter and expects $108 billion next. Management projects 70% revenue growth in fiscal 2028, with supply being the primary constraint. Nvidia defended its position, calling its AI compute a "productive, durable and fungible asset.
Reactor, a developer platform for real-time generative video and world models, announced that NVIDIA and Sapphire Ventures have joined its Series A funding round, led by Lightspeed Venture Partners. The company provides infrastructure enabling developers to run increasingly powerful world models in real time at over 60 frames per second with sub-40 millisecond latency. The platform is being used across media and entertainment, with major Hollywood studios, advertising platforms, and streaming services running active projects. Physical AI and robotics represent another key application, allowing robot policies and world models requiring substantial compute power to run in the cloud. Reactor was co-founded by Alberto Taiuti and Bryce Schmidtchen, both former technical leads on Apple Vision Pro. The platform is available today via SDK and API with usage-based pricing.
Taiwan Semiconductor Manufacturing Company (TSMC) reports earnings on 15 October, opening a six-week window that may favour Broadcom over NVIDIA through Thanksgiving. The key factor is TSMC's 2027 outlook on AI demand and advanced packaging capacity, not its third-quarter results. Broadcom expects roughly $115 billion in fiscal 2027 AI semiconductor revenue, roughly double its 2026 level, with approximately 95% of its wafers coming from TSMC. The company sees a path to $230 billion in fiscal 2028. Strong commentary from TSMC would provide independent confirmation of this aggressive forecast. NVIDIA's data centre revenue reached $89 billion last quarter, up 117% year over year, but investor expectations are already high. Broadcom, by contrast, has more to gain from positive TSMC guidance as its custom AI accelerator business continues evolving rapidly. Management's commentary on 2027 capacity requirements could force analysts to reconsider the business's ultimate size.