Nvidia's Toughest Competition in 2028 May Be the Chips It Already Sold
Its biggest customers say the hardware stays useful for up to six years -- and almost none of it is scheduled to retire in 2028.
Overview
Nvidia (NASDAQ:NVDA) can't build artificial intelligence (AI) hardware fast enough for its customers. But the chips it has already delivered aren't going anywhere.
Nvidia's data center business generated $47.5 billion of revenue in fiscal 2024. In fiscal 2025, that figure jumped 142% to $115.2 billion. And in fiscal 2026, it climbed another 68% to $193.7 billion (Nvidia's fiscal years end in late January). That adds up to about $309 billion of shipments across the last two of those years alone -- and nearly all of that hardware is likely still racked up and running.
Details
How long it keeps running is something Nvidia's biggest customers estimate in their filings, and those estimates carry real money. When Meta Platforms (NASDAQ:META) raised its estimated useful life for most servers to 5.5 years in 2025, the change added $1.00 to its earnings per share for the year.
Source
Originally published at www.fool.com.