Nvidia shares have risen more than 12% since the start of August, pushing the market capitalization back to $5.5 trillion and leaving it 4% below its all-time high. The rally coincides with Chief Executive Jensen Huang doubling his revenue forecast for the company's next-generation AI platform to at least $1 trillion through 2027 and unveiling a financing partnership with six major financial firms to fund AI infrastructure.

The financing partnership

On Aug. 10, Huang announced memoranda of understanding with Goldman Sachs, KKR, BlackRock and three other unnamed global financial firms to attract more than $500 billion in external capital for AI compute infrastructure. Huang described the step as creating a new class of productive, investable infrastructure, AI factories, and argued that compute is becoming revenue, with Nvidia compute uniquely suited for the role.

The revenue trajectory

At the March GTC conference, Huang had set a $500 billion revenue target through 2027 for the Blackwell and Vera Rubin architectures. The new $1 trillion figure reflects what he called the arrival of the inference inflection. For the current fiscal year ending in late January, the company estimates fiscal Q2 revenue of around $91 billion, up roughly 11.5% from Q1. Even at a 12% sequential quarterly growth rate, full-year revenue would land just shy of $400 billion, well short of the $500 billion mark. The following fiscal year is expected to surpass $500 billion, with $1 trillion in annual revenue described as realistically in sight.

The valuation context

Shares currently trade at a multiple the source describes as not unrealistic, implying further upside alongside sales and earnings growth. The stock's 12% August gain has recovered most of the ground lost from its peak, leaving the valuation 4% below the all-time high.

What to watch

The agreements are memoranda of understanding and the $500 billion in external capital is a target, not a commitment. Fiscal Q2 results due later this month will test whether the 11.5% sequential growth pace holds. The trajectory to $1 trillion annual revenue depends on sustained AI infrastructure spending acceleration, which the financing partnership is designed to underwrite.