Nvidia’s Projected Growth in AI Chips
At GTC 2026, Nvidia CEO Jensen Huang announced that demand for the company’s Blackwell and Rubin chips could reach around $1 trillion by 2027, a significant increase from last year’s projection of $500 billion. This new figure is particularly noteworthy for investors.
While the valuations for some key players in AI infrastructure have seen a decline lately, Huang’s remarks underscore the ongoing strong demand for AI technologies.
Nvidia stands to gain the most from this trend. Still, Huang also highlighted others like Dell Technologies and Amazon in his keynote speech. There’s a compelling case for considering all three as smart investment options right now.
Nvidia: The AI Chip Leader
Huang’s perspective on orders from top AI companies, researchers, and governments signals substantial business growth. Nvidia not only supplies critical components for AI data centers but also boasts a range of chips beyond just GPUs, along with essential networking gear and the CUDA software platform. This software is a crucial part of Nvidia’s advantage, enabling customers to optimize their GPU performance for diverse tasks like training complex models.
This strategic position has allowed Nvidia to maintain high profit margins. Last year, the company’s revenue surged by 65% to $216 billion, resulting in a profit of $120 billion.
However, it’s worth noting that future growth isn’t guaranteed. The risk of competition from other chip manufacturers looms, and though Nvidia’s lead seems secure, its profitability could be impacted if demand shifts towards custom chip makers.
Yet, Nvidia remains a favored choice among hedge funds, as indicated by Motley Fool research. The stock is valued at 22 times current earnings and 17 times projected earnings for next year. If demand holds steady and Nvidia continues to perform well, there’s potential for stock appreciation.
Dell Technologies: A Key Player in AI Servers
With rising demand for Nvidia’s GPUs, there’s an increasing need for server racks to connect them, which could translate into higher sales for Dell Technologies, a leading server supplier. Dell’s stock is currently priced at a relatively modest 12 times forward earnings.
The company operates in two main sectors: infrastructure solutions (like servers, storage, and networking) and client solutions (primarily PCs). While the PC market has been sluggish, the infrastructure sector is driving growth, which saw sales reach $61 billion last year—a 40% increase from the year before.
Huang emphasized a collaborative effort with Dell and Palantir Technologies during the keynote at GTC 2026. Nvidia’s chips are integral to Dell’s AI Factory and serve as the foundation for Palantir’s AI operating system. This partnership illustrates Dell’s importance in the broader AI landscape.
Dell’s AI sector is booming, with AI-optimized server revenue skyrocketing by 342% year-over-year to $9 billion in the fourth quarter. If the company maintains this growth trajectory, there’s potential for its valuation to increase. Analysts predict that Dell’s profits could grow at an annual rate of 15% in the coming years.
Amazon: A Leader in Cloud Computing
Amazon seems to have an unyielding momentum. The company caters to millions through its online retail platform while also tapping into lucrative revenue streams from advertising and cloud services.
Amazon Web Services (AWS), the leading enterprise cloud platform, was a significant driver of growth in the AI infrastructure space. AWS saw a 24% increase in fourth-quarter revenue last year.
Interestingly, AWS had to hold back some of its 2025 revenue because demand for AI services was exceeding its data center capacity. Amazon’s efforts to enhance its computing power might address this shortfall and support greater growth than current stock prices suggest.
During the GTC 2026 event, Huang noted the potential impact of the recent OpenAI partnership with AWS, which could stimulate significant cloud computing demand.
OpenAI recently chose AWS as its exclusive cloud provider to develop its Frontier enterprise platform, which aids companies in implementing AI solutions. This collaboration could spark ongoing spending on cloud services, acting as a growth catalyst for Amazon, as AWS contributes approximately half of the company’s profits.
Analysts anticipate profit growth of 18% annually over the next few years. Should Amazon meet these expectations, its stock stands to be a solid investment for those willing to be patient, especially since it currently trades at the lowest multiple in a decade, based on operating cash flow.
