Nvidia CEO Jensen Huang says Vera Rubin systems carry about $40 billion in revenue per gigawatt, up from about $25 billion for Grace Blackwell. A Motley Fool analyst argues that pricing could push earnings above consensus estimates.
Nvidia expects a substantial jump in revenue from its Vera Rubin chips, which the company has started shipping to customers.
Huang puts Vera Rubin at $40 billion per gigawatt
On the company's August earnings call, Huang compared the revenue opportunity across chip generations. According to Huang: "for Vera Rubin, it's about $40 billion per gigawatt", against about $25 billion for Grace Blackwell and about $18 billion for Hopper.
Nvidia has widened its opportunity by selling a fuller server rack system. The rack includes a server CPU, the Vera GPU, optical networking elements and a language processing unit for accelerating inference tasks. The shift from Blackwell to Vera Rubin is poised to lift revenue per gigawatt by more than the move from Hopper to Blackwell did.
Higher cost against efficiency gains
Customers will pay more to deploy Vera Rubin, but the extra cost should be more than offset by performance and efficiency gains. Nvidia claims Vera Rubin's performance-per-watt is 10x higher than Blackwell's. The systems consume twice as much power as Blackwell systems, yet the overall gains remain much higher.
Earnings estimates and a $457 scenario
According to consensus estimates, Nvidia's earnings per share (see the EPS glossary) could jump 95% in fiscal 2027 to $9.31. Analysts expect the pace of growth to slow over the next couple of fiscal years.
The Motley Fool analyst, however, says earnings growth could exceed those expectations because of the stronger pricing Nvidia is commanding for Vera Rubin. If earnings reach $21.34 in fiscal 2029 and the stock trades at 21.4 times earnings, in line with the Nasdaq-100's forward multiple, the shares could reach $457 in just over two years.
That would imply a potential jump of 121%. The analyst adds that Nvidia trades at just 13 times forward earnings.
Source: The Motley Fool
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