William Blair: NVIDIA’s FY 2025 Revenue To Increase To $110 Billion, Total Addressable Market (TAM) Swells To $2.4 Trillion

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There has been a lot of chatter around NVIDIA's peaking margins in recent days, with the bears using this transitory plateau - which itself is a function of the company's ongoing Blackwell production ramp-up - as a cudgel of sorts to declare vindication. Yet, a more nuanced perusal of NVIDIA's market dynamics can only yield one conclusion: the stock's bull case remains intact and pristine. Today, the investment firm William Blair is out with its bullish take on NVIDIA's prospects.

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To wit, William Blair believes that NVIDIA has successfully expanded its Total Addressable Market (TAM) from a concentration within the GPU sphere worth just around $100 billion to the broader semiconductor and cloud markets, where the former is worth $800 billion and the latter $1.6 trillion to yield a cumulative TAM of ~$2.4 trillion.

What's more, William Blair now sees NVIDIA's FY 2025 revenue at a whopping $110 billion. To put this figure into context, the company's FY 2023 revenue was just $15 billion!

As a refresher, each GB200 CPU+GPU combo is priced between $60,000 and $70,000, while a single NVIDIA B100 AI accelerator costs between $30,000 and $35,000. What's more, the company is also selling an entire 72-chip AI rack at between $2 million and $3 million.

As an illustration of how robust the demand is for the company's products, Oracle recently announced a "zettascale" supercluster that "can scale up to 131,072 Blackwell GPUs with NVIDIA ConnectX-7 NICs for RoCEv2 or NVIDIA Quantum-2 InfiniBand networking to deliver an astounding 2.4 zettaflops of peak AI compute to the cloud."

Meanwhile, NVIDIA CEO Jensen Huang asserted at the recent Goldman Sachs Communacopia + Technology conference that, given the current