- Nvidia accelerators remain the company’s strongest revenue driver through 2028
- Hyperscaler expenses could exceed $ 450 billion annually in 2027
- Growth in AI -hardware is already showing signs of slower
New predictions have claimed that Nvidia’s AI-related sales could approach $ 400 billion in 2028, a projection showing the scope of demand, but also raising questions about sustainability in such a fast-paced market.
The analysis from Morningstar Equity Research claims that Nvidia’s AI accelerators spanning graphics processors and systems designed for machine learning will remain the company’s most important source of income for the next several years.
With almost 40% composed annual growth projected in the acceleration market, these products could represent almost half of NVIDIA’s total income in 2028.
Quick acceleration of AI-driven revenue
Artificial intelligence has become the centerpiece of the global technology investment that transforms both infrastructure and business strategies, and is expected to be the dominant growth driver over the semiconductor and quickly become a valuation anchor for Nvidia.
However, the assumption that this trajectory continues without disturbance reflects optimism that may not fully explain sector volatility.
A central driving force for this growth is hyperscaler investments – Sky providers such as Microsoft, Amazon and Google are expected to push the annual capital costs beyond $ 450 billion in 2027, more than triple levels in 2023.
This wave is originally bound to educate large language models and other AI tools, but it is expected to expand to business applications and government-led initiatives.
While these trends create favorable conditions for NVIDIA, they also introduce uncertainty as the company’s almost term wealth remains dependent on hyperscaler strategies.
Morningstar’s forecast places NVIDIA firmly at the top of the AI Accelerator market, followed by competitors such as Broadcom with custom hardware and AMD with general purpose systems.
Still, the semiconductor industry has a long history of cyclic downs, where rapid expansion is often followed by sudden corrections.
At the same time, companies across the value chain, including foundries, software design companies and equipment providers, are placed to take advantage of AI demand.
This diffusion of growth suggests that Nvidia’s dominance may face gradual erosion as competitors capture larger shares in the market.
A more complicated image emerges when you look beyond the immediate wave as Morningstar’s diagram shows, while AI accelerator and network sales are expected more than triple in 2029, the growth speed began sharply after 2024.
This creates a paradox: Absolute revenue continues to rise, yet the increase is noticeably noticeable.
For Nvidia, this cool momentum signals a period when maintaining extraordinary growth is becoming far more difficult.
Even if Nvidia reaches sales close to $ 400 billion in 2028, challenges in the long term are inevitable.
Increasing energy needs for AI data centers, increased government efforts to ensure regional AI independence and the possibility of regulatory intervention can all reshape the operating environment.
Market management on this scale has also historically attracted political control and increased the investor’s caution, adding another layer of risk to the prospects.
