Fresh data suggests upside to Nvidia’s hyperscaler revenue: Barclays

Investing.com -- In a note Wednesday, Barclays highlighted a chart shared by Nvidia that it says points to at least $30 billion of potential upside to the chipmaker's revenue from the top five cloud providers in both 2026 and 2027.

Analyst Tom O'Malley said Nvidia disclosed its share of IT capital spending across the five largest cloud service providers in recent years, through the second quarter of 2026, along with an estimate of 44% for 2027.

Using Barclays' internet team's assumption that cloud capital spending reaches about $1.1 trillion by 2027, and assuming 80% of that goes to IT, O'Malley calculated what Nvidia's revenue should look like against the firm's own estimates.

That math is said to imply hyperscaler revenue of $237 billion in 2026 and $401 billion in 2027. Barclays currently forecasts $206 billion and $370 billion.

In an upside scenario, assuming historical ratios hold, O'Malley sees revenue reaching $246 billion and $417 billion in those years.

He also noted that Nvidia's hyperscaler revenue includes SpaceX, while the top five cloud provider figure does not. That would imply an even larger total than the calculation suggests.

"All things considered, we think sentiment on the name can continue to improve amidst solid numbers upside, increased buybacks, Hugging Face acquisition, etc.," O'Malley wrote.

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