Nvidia's Unprecedented Rally Fueled by Concrete Demand and Software Expansion

Nvidia's historic stock streak is fueled by 65% revenue growth, a $1 trillion GPU backlog through 2027, and confirmed demand from partner TSMC.

Nvidia's stock has achieved a milestone not seen since its 1999 IPO: eleven consecutive trading days of gains. This historic winning streak is being driven by more than market sentiment; it's backed by hard data from its supply chain and a clear roadmap for its next-generation technology. The company's operational performance and strategic software announcements are painting a picture of sustained, tangible demand.

Operational metrics reveal the scale of this growth. For its 2026 fiscal year, Nvidia reported total revenue of approximately $216 billion, a 65% year-over-year increase. The data center segment, which now accounts for 88% of total sales, grew by 68%. This marks a significant shift from just five years ago when gaming was the core business. The company's gross margin remains robust at around 75%.

The demand signal is confirmed by its most critical partner. Taiwan Semiconductor Manufacturing Company (TSMC), Nvidia's primary manufacturing partner and now its largest single customer, reported a 58% profit jump for the first quarter, its fourth consecutive record quarter. High-performance computing, including AI applications, contributed 61% of TSMC's revenue. The chip foundry forecasts revenue growth of over 30% for the full year 2026. Analysts note that demand continues to significantly outstrip supply, with TSMC's capacity fully booked.

Financially, the company is returning substantial capital to shareholders. Over the first nine months of fiscal 2026, more than $37 billion was returned via share buybacks and dividends, with an additional $62 billion remaining in the buyback authorization. Looking ahead, CEO Jensen Huang stated at the GTC conference that the order backlog for graphics processing units through 2027 exceeds $1 trillion, covering both the current Blackwell and upcoming Vera Rubin generations. Hyperscalers including Meta, Amazon, Google, and Microsoft are in line for these systems.

On the Frankfurt exchange, Nvidia shares recently traded at 167.64 EUR. This price sits about 7% below the 52-week high from November and represents a near-doubling, or an 83% gain, over a twelve-month period. The Relative Strength Index (RSI) reading of around 41 suggests the technical picture is not overheated, indicating an orderly upward trend. The stock also found support from management's firm denial of rumors regarding the acquisition of a major PC maker, which provided immediate relief to the share price.

The immediate product pipeline is sold out, with new Blackwell systems completely booked through the middle of this year. Each of these high-performance GPUs carries a price tag of around $40,000. For the first quarter of fiscal 2027, management is targeting revenue of $78 billion.

Beyond hardware, Nvidia is deepening its software ecosystem. Ahead of the upcoming NAB Show in Las Vegas, the company unveiled a major update for Adobe Premiere Pro developed in collaboration with Adobe. The update introduces a new color correction mode for professional users, leveraging the computing power of Nvidia RTX accelerators to enable smooth playback of large files and short render times even with multiple layered color filters. The presentation of these new software tools at the industry event, starting April 18, will serve as a key indicator of practical, application-driven demand.

This phase of the market differs sharply from the initial AI hype of November 2023, which was sparked by the discovery of ChatGPT. Today, concrete applications and firm sales figures dominate the narrative. The next concrete test for the rally will be the official quarterly results for Q1 FY2027, expected in late May. Until then, the Vera Rubin platform and the market's reception to Nvidia's expanding software suite will likely command investor attention, as pre-orders from major data centers suggest the next upgrade cycle is already underway.