Nvidia's AI Expansion: Revenue Projected to Reach $300 Billion by 2026

Nvidia's AI expansion is expected to push revenue to $300 billion by 2026, according to Cantor Fitzgerald analyst C.J. Muse. The company's Data Center segment remains the primary growth engine, driven by surging demand for AI and its new Blackwell architecture. Muse has upped his price forecast for Nvidia to $240 and maintains his Overweight rating on the stock.

Nvidia's (NASDAQ:NVDA) AI expansion is expected to push its revenue to $300 billion by 2026, according to Cantor Fitzgerald analyst C.J. Muse. The company's Data Center segment remains the primary growth engine, driven by surging demand for AI and its new Blackwell architecture. Muse has upped his price forecast for Nvidia to $240 and maintains his Overweight rating on the stock [3].

The company's Q2 2026 earnings are anticipated to be announced at the end of August, with analysts projecting earnings of $1 per share, an increase from $0.68 in the same quarter last year [1]. Revenues are projected to grow by over 50% year-over-year to $45.60 billion. This growth is likely to be fueled by the sustained strong demand for the company’s GPU chips utilized in generative AI applications.

Historically, NVDA stock has tended to outperform following earnings releases, having risen 60% of the time with a median one-day increase of 4.5% and a maximum observed increase of 24% [1]. The company holds a current market capitalization of $4.4 trillion. Over the past twelve months, revenue totaled $149 billion, and it was operationally profitable, achieving $86 billion in operating profits and a net income of $77 billion.

The AI infrastructure market is projected to grow at a 30.4% CAGR, reaching $223.45 billion by 2030. Nvidia is positioned to capture a lion's share of this growth, with analysts forecasting its market share in AI-focused GPUs to remain above 90% through 2030 [2]. The company's Blackwell architecture has already delivered a 40x performance boost in AI workloads, enabling hyperscalers and enterprises to deploy large-scale models faster than ever. With 75% of the world's top supercomputers powered by Nvidia, the company is not just a participant in the AI boom—it's the architect.

Microsoft, Alphabet, and Meta Platforms have announced plans to increase capital expenditures next year, which bodes well for Nvidia as a large portion of their spending goes towards filling data centers with Nvidia GPUs [3]. Additionally, Nvidia has a growth tailwind in China with its export license renewed, suggesting that Nvidia's stock will have another great year.

For event-driven traders, historical trends might provide an advantage, whether by positioning prior to earnings or responding to post-release movements. That said, if you are looking for upside with less volatility than that of individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception [1].

In conclusion, Nvidia's combination of bullish price targets, explosive earnings, and a corner on AI infrastructure makes it a compelling investment ahead of 2026. The risks are real, but for those willing to ride the AI wave, the rewards could be transformative.

References:
[1] https://www.forbes.com/sites/greatspeculations/2025/08/18/buy-nvidia-stock-ahead-of-earnings/
[2] https://www.ainvest.com/news/time-buy-nvidia-ai-driven-growth-2026-2508/
[3] https://www.ainvest.com/news/nvidia-stock-set-soar-ai-hyperscalers-plan-major-data-center-investments-2508/