Nvidia management projects AI hyperscaler capital expenditures will reach $1 trillion in 2027, up from $650 billion expected in 2026, signaling sustained AI spending growth.

During Nvidia's conference call, management noted that AI hyperscaler capital expenditures will likely reach $1 trillion in 2027, up from the $650 billion expected in 2026.

Nvidia expects annual capital expenditures to rise to $3 trillion to $4 trillion by 2030, with data center costs shifting from construction to compute, which will boost Nvidia's growth rate by more than the overall capital expenditure growth rate.

The market is not pricing in much success after 2026; Nvidia currently trades at 24 times forward earnings, which would result in a 24 times trailing earnings ratio by the end of its fiscal year (ending January 2027) if analyst growth projections are met—below the S&P 500's current 26.5 times trailing earnings multiple.