Nvidia projects data center capital expenditures will reach $1 trillion in 2027, signaling major growth for chip and memory suppliers.

Nvidia management expects data center capital expenditures to reach $1 trillion in 2027, with the industry on track to achieve $3 trillion to $4 trillion annual spend by 2030.

Taiwan Semiconductor, which manufactures Nvidia's chips, expects its AI chip business to grow at nearly a 60% compounded annual growth rate from 2024 to 2029. Micron, a memory chip manufacturer, is expected to triple its revenue and see nearly a 60% growth next year as memory chip demand from AI strains supply.

Micron stated it can only meet half to two-thirds of medium-term memory chip demand, keeping prices elevated; efforts by memory producers to increase output won't be ready until later in 2027.