Analysts project Nvidia’s earnings per share will grow by an average of 35% annually through 2027, fueled by its expanding AI chip roadmap and sustained demand for data center infrastructure. The company’s next-generation H200 and upcoming B200 architectures are central to this outlook.
- Nvidia’s EPS projected to grow at a CAGR of ~18% from $17.80 (2024) to $29.50 (2027)
- AI-driven product revenue expected to represent over 80% of semiconductor sales by 2027
- H200 and B200 GPU architectures central to near- and long-term growth strategy
- Gross margins forecasted to exceed 75% through 2027
- R&D investment surpassing $12 billion annually, supporting continued innovation
- Strong demand from hyperscalers and enterprises driving server procurement volumes
Nvidia's strategic expansion in AI accelerators is emerging as a key driver of long-term profitability, with analysts forecasting robust earnings per share (EPS) growth extending into 2027. The company's ongoing development of high-performance GPUs, including the H200 and the upcoming B200 series, is expected to maintain its leadership in the data center segment. These chips are designed to handle increasingly complex AI workloads, from large language models to real-time inference applications. The projected EPS trajectory hinges on several structural advantages: increasing adoption across hyperscalers, enterprise clients, and government organizations, coupled with Nvidia’s vertically integrated approach to AI software and hardware. Analysts estimate that revenue from AI-related products could account for over 80% of total semiconductor sales by 2027, up from approximately 65% in 2024. This shift underscores the growing importance of AI-specific silicon in Nvidia’s core business model. Specific financial projections indicate that Nvidia’s EPS is expected to rise from $17.80 in 2024 to $29.50 by 2027, representing a compound annual growth rate (CAGR) of nearly 18%. This growth is underpinned by strong gross margins—projected to remain above 75% through 2027—and continued investment in R&D, which currently exceeds $12 billion annually. The company’s ability to command premium pricing due to proprietary interconnect technologies like NVLink and Grace CPU integration further strengthens its margin profile. Market participants, including institutional investors and index funds tracking semiconductor and AI exposure, are closely monitoring these trends. Increased demand for generative AI platforms has led to a surge in server procurement, directly benefiting Nvidia. Meanwhile, competitors such as AMD and Intel face challenges in scaling equivalent AI performance at volume, reinforcing Nvidia’s market dominance and pricing power.