Nvidia's race to outpace physics

Nvidia CEO Jensen Huang said Monday the company expects to generate "at least" $1 trillion in revenue from its newest chips through 2027, betting that rapid efficiency improvements will keep pace with surging AI electricity demand. The company's market share has dropped from 100% in Q1 2022 to 65% in Q4 2025 as competitors gain ground, but Nvidia's latest Blackwell chips redesigned computing architecture to deliver dramatic performance-per-watt gains. Energy efficiency—not a cost-saving afterthought but a hard physical constraint—now determines how fast AI can scale, since electricity supply is finite while AI demand appears unlimited. Nvidia faces a strategic vulnerability as the industry shifts from AI training (where its chips excel) to inference (which prioritizes efficiency differently), forcing the company to extend its business model into lower-margin work.