Jensen Huang Says Nvidia’s Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt, Up From $25 Billion for Grace Blackwell. What That Means for Nvidia’s Growth Runway?

Nvidia (NASDAQ: NVDA) dominates the artificial intelligence (AI) chip market, which helps explain why it continues to clock handsome growth even after becoming significantly larger than it was when the AI boom began.

The good news for Nvidia investors is that its AI-fueled growth is sustainable. The company has been pulling the right strings to ensure that it remains the dominant force in AI chips despite intensifying competition. That’s precisely why the company expects a substantial jump in revenue from its latest Vera Rubin chips, which Nvidia has started shipping to customers.

Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

Let’s look at the reasons why Vera Rubin could help Nvidia sustain its phenomenal growth.

Nvidia will make significantly more money from Vera Rubin systems

Nvidia CEO Jensen Huang remarked on the company’s August earnings call that its revenue opportunity from the latest Vera Rubin chips is significantly larger compared to the previous generation Blackwell chips. He noted:

In the case of Hopper, we were at about $18 billion per gigawatt. For Grace Blackwell, we’re about $25 billion per gigawatt. And for Vera Rubin, it’s about $40 billion per…