In just two and a half years, NVIDIA's revenue is expected to reach $1 trillion: the biggest shovel seller in AI.

On August 29, just a few years ago, NVIDIA was still a small semiconductor company with revenue that was negligible compared to giants like Intel and Samsung. However, in recent years, it has become the "pick-and-shovel seller" of AI, and NVIDIA could potentially achieve trillion-dollar revenue in about two and a half years.

This Wednesday, NVIDIA released a stunning Q2 FY2027 earnings report, with revenue of $96.2 billion, a year-over-year increase of 106%, of which data center revenue accounted for $89 billion.

Non-GAAP gross margin was 75.0%, operating margin was 66.5%, and net profit reached $59.69 billion, up 2% quarter-over-quarter and a massive 126% year-over-year.

This earnings report was exceptionally strong, with Q3 guidance of $108 billion, surpassing Wall Street's expectation of $105.1 billion. GAAP and non-GAAP gross margins are expected to be 74.0%, and the gross margin remains sustainable despite memory price increases.

Revenue growth for the next fiscal year is projected at 70%, and this figure already accounts for supply constraints. NVIDIA stated that if not for supply chain bottlenecks, FY2028 revenue would be even higher.

As the biggest "pick-and-shovel seller" in the AI industry, NVIDIA has already achieved extremely high revenue and profits over the past two years, but its future growth forecasts remain highly optimistic, even exceeding Wall Street expectations.

This has led the industry to seriously consider NVIDIA's vision of reaching $1 trillion in revenue, and the timeline is faster than many imagine. Raymond James analyst Simon Leopold has set the target at FY2029, meaning trillion-dollar revenue could be achieved by January 2029.

Previously, the market's consensus estimate for FY2029 revenue was around $750 billion, but NVIDIA's latest earnings report has significantly raised this figure. Earlier predictions had suggested it would take until the end of 2030 to reach $1 trillion.

What does $1 trillion mean? In FY2020, NVIDIA's annual revenue was just $10.9 billion, with gaming revenue accounting for about half, and the data center business was nowhere near as dominant as it is today. NVIDIA has the potential to grow its revenue 100-fold in less than 10 years.

With less than two and a half years until January 2029, with $1 trillion in revenue and over $600 billion in net profit, it's hard to imagine how high NVIDIA's market cap will climb in the coming years. A $10 trillion market cap is truly not far away.