Investing.com — S&P Global Ratings raised its long-term issuer credit rating on NVIDIA Corporation () to “AA” from “AA-,” citing insatiable market demand for artificial intelligence systems. The upgrade reflects the chipmaker’s sustainable competitive advantage and massive cash flow generation within the rapidly expanding data center ecosystem.

The ratings agency now forecasts Nvidia’s revenue to surge 82% in fiscal 2027 to $394 billion, followed by a 38% increase to $544 billion the following year. This explosive growth is driven by the company’s successful transition to its Blackwell GPU platform and a clear roadmap for its next-generation Rubin architecture.

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Nvidia’s platform-centric approach has allowed it to command a significant price premium while deepening its competitive moat against rivals like Advanced Micro Devices Inc. Rising operating margins and low capital intensity are projected to lift free operating cash flow to $196 billion in fiscal 2027 and $276 billion in fiscal 2028.

This immense liquidity has enabled the Silicon Valley giant to aggressively fund shareholder returns, including an enhanced $80 billion share repurchase authorization and an increased dividend payout. Concurrently, Nvidia has secured its supply chain by making heavy prepayments to Taiwan Semiconductor Manufacturing Co. for leading-edge foundry capacity.

Despite the upgrade, S&P Global highlighted material risks stemming from Nvidia’s heavy geographical and supplier concentration with TSMC in Taiwan. Additionally, the broader AI infrastructure rollout remains vulnerable to potential capital market tightening and looming power supply bottlenecks for data centers.

The stable outlook indicates expectations that Nvidia will maintain its market leadership and further strengthen its pristine balance sheet. S&P Global noted that future rating upside would require a meaningful reduction in manufacturing outsourcing concentration alongside sustained net cash positions.