NVIDIA (NVDA), Sells GPUs and Earns More... Activates New Revenue Engine with Cloud

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NVIDIA (NVDA) is building a recurring revenue model linked to AI usage, going beyond Blackwell sales. AI factory contracts have emerged as a new growth engine that will break the limits of one-time semiconductor sales.

According to the economic media Yahoo Finance on July 5 (local time), NVIDIA received 44 upward revisions to its earnings per share (EPS) forecast for the next fiscal year over the past three months. There were only 4 downward revisions. Revenue forecasts were raised 46 times, with only 4 downward revisions.

On July 1, NVIDIA unveiled a revenue-sharing and credit-backed model for building large-scale multi-tenant AI factories with AI cloud companies. AI cloud companies sell NVIDIA-based cloud services. NVIDIA secures product sales along with a portion of the cloud revenue generated from the supported capacity.

Sharon AI is deploying up to 40,000 Grace Blackwell GB300 GPUs. Firmus is building a DSX AI Factory campus in Batam, Indonesia. The facility is expected to expand to 360 megawatts and up to 170,000 NVIDIA GPUs.

The article noted that the AI factory model links Blackwell demand to recurring usage-linked revenue. In traditional GPU sales, revenue occurs at the time of hardware supply. In the new structure, NVIDIA also secures a portion of the cloud revenue from the supported AI computing capacity.

NVIDIA supplies graphics processors, data center accelerators, networking systems, central processing units, and AI software platforms. The article presented the upward revisions in performance forecasts and the AI factory revenue model as new growth catalysts for NVIDIA.

[Article Key Summary]

-NVIDIA's earnings per share forecast for the next fiscal year has been revised up 44 times and down 4 times in the last three months.

-NVIDIA is building a revenue-sharing model with AI cloud companies, securing product sales and a portion of cloud revenue.

-Sharon AI plans to deploy up to 40,000 NVIDIA GPUs, and Firmus AI Factory plans up to 170,000.

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