Nvidia AI sales to reach almost $400 billion by 2028, research claims – but the story doesn’t end there. While the chipmaker dominates AI accelerators today, analysts warn that the company could face slowing growth, intensifying competition, and market shifts in the years ahead.
This projection underscores both Nvidia’s unprecedented success and the hurdles it will need to navigate as AI adoption matures worldwide.
Nvidia’s AI Accelerator Boom
Morningstar Equity Research predicts Nvidia’s AI sales will remain its strongest growth driver for years to come. The company’s accelerators — from GPUs to purpose-built systems for machine learning — are expected to dominate data centers and hyperscaler investments.
With nearly 40% compound annual growth in the accelerator market, Nvidia’s AI chips could represent almost half of the firm’s revenue by 2028. That’s a staggering shift that highlights just how deeply the company has tied its future to AI.
Hyperscalers Fuel the Surge
Cloud giants like Amazon, Microsoft, and Google continue to pour billions into AI infrastructure. Morningstar projects hyperscaler spending alone could exceed $450 billion annually by 2027, much of it flowing toward Nvidia-powered systems.
This spending spree explains how Nvidia’s AI sales could reach almost $400 billion by 2028. But experts also caution that hyperscaler demand won’t expand forever — eventually, growth will cool as efficiency improves and competitors gain ground.
Signs of Slowing Growth
Despite eye-popping forecasts, early warning signs are already emerging. Growth in AI hardware shipments is beginning to taper off, suggesting the market may normalize sooner than some expect.
That doesn’t mean Nvidia’s dominance is in immediate danger, but it does suggest the days of unchecked demand could be numbered. For the world’s most valuable company, that could mean tougher battles ahead.
Competition Is Catching Up
Rivals like AMD, Intel, and custom AI chip startups are aggressively targeting Nvidia’s core markets. Even hyperscalers themselves — including Google with TPU and Amazon with Trainium — are developing in-house solutions to reduce reliance on Nvidia.
If these alternatives gain traction, Nvidia may find it harder to maintain premium pricing and market share, especially beyond 2028.
What This Means for Nvidia’s Future
The headline “Nvidia AI sales to reach almost $400 billion by 2028, research claims” highlights both growth and uncertainty. The company has cemented itself as the backbone of the AI revolution, but sustaining that momentum will be far from easy.
Success beyond 2028 may depend on how Nvidia adapts to slowing growth, new rivals, and changing customer needs. For now, the company remains on top — but the next chapter could prove more challenging than the last.
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