Nvidia Corp.s (NASDAQ:NVDA) specialized LPU and LPX racks are on track for a dramatic surge in shipments, with total volumes expected to multiply tenfold by 2027, according to analyst Ming-Chi Kuo.

Order-Of-Magnitude Growth Driven By AI Demand

On Monday, a post on X, Kuo said supply-chain checks indicate total LPU shipments could reach 4–5 million units across 2026 and 2027, with the majority landing in 2027.

Fast-growing LPU demand reflects deep ecosystem integration and the rise of ultra-low-latency AI workloads, from coding agents to real-time consumer applications, Kuo noted.

Next-Gen Rack Architecture To Boost Performance

Nvidia plans to increase LPU density per rack from 64 to 256 units, supporting larger long-context AI tasks without slowing inference.

Mass production of the new racks is expected in late 2026 to early 2027, with shipments projected to reach 15,000–20,000 racks in 2027.

Integration, Developer Tools And Compiler Support Key

Kuo highlighted that rack-level interconnects via NVLink Fusion and RealScale, Nvidia's NIM software for seamless workload deployment and TensorRT-LLM compiler integration will be critical to maximizing performance.

PCB Supply Chain To Benefit

The ramp also marks a milestone for the PCB industry, particularly WUS Printed Circuit, which supplies high-grade M9 materials

 A successful LPU rollout could drive new growth cycles for high-layer-count boards.

Nvidia's Reported $20 Billion Groq Deal

In December 2025, reports emerged that Nvidia had agreed to acquire assets from Groq, a designer of high-performance AI accelerator chips, for $20 billion in cash.

In a blog post, Groq stated that it had "entered into a non-exclusive licensing agreement with Nvidia for Groq's inference technology," without revealing any financial details.

The company added that it will remain an "independent company," with Chief Financial Officer Simon Edwards stepping in as CEO.

If completed, the deal would mark Nvidia's largest acquisition to date, far surpassing its previous record—the $7 billion purchase of Israeli chip designer Mellanox in 2019. At GTC 2026, Nvidia is expected to announce the Groq acquisition.

Price Action: Nvidia closed at $180.25, down 1.58% on Friday and is trading pre-market at $181.84, up 0.88%, according to Benzinga Pro.

Benzinga Edge Stock Rankings show NVDA exhibiting weakness in the short, medium and long-term, while its Growth score ranks in the 97th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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