Nvidia (NVDA) has been at the center of the artificial intelligence (AI) boom. The chipmaker’s powerful GPUs and AI software have fueled explosive growth and reshaped industries, powering everything from ChatGPT to cloud infrastructure. But as AI matures, investors and analysts are turning their attention to Nvidia’s next big growth frontier: robotics.

At Nvidia’s recent annual shareholder meeting, CEO Jensen Huang highlighted robotics, beginning with autonomous vehicles, as the company’s most significant growth opportunity beyond AI, potentially representing another trillion-dollar market. Nvidia’s advanced chips and AI platforms already power self-driving technologies and industrial robots, placing it at the forefront of this expanding market. With global autonomous vehicle and robotics industries set to grow exponentially over the next decade, Nvidia could see yet another massive wave of growth ahead.

In this article, we’ll explore Nvidia’s current position in the robotics market and delve into Huang’s vision for the future. Let’s dive in!

About Nvidia Stock

Nvidia (NVDA) is a premier technology firm known for its expertise in graphics processing units and artificial intelligence solutions. The company is renowned for its pioneering contributions to gaming, data centers, and AI-driven applications. NVDA’s technological solutions are developed around a platform strategy that combines hardware, systems, software, algorithms, and services to provide distinctive value. Its market cap currently stands at $3.85 trillion.

Shares of the AI darling have gained 17.1% on a year-to-date basis. The stock has staged a strong rebound from its April lows, driven by solid Q1 earnings, a pause in tariffs, and the scrapping of the AI diffusion rule. Nvidia is now the most valuable public company in the world.

Nvidia CEO Sees Robotics as the Largest Growth Opportunity After AI

AI has fundamentally transformed the way we interact with technology. As AI continues to evolve, robotics are a natural extension of the technology. Amid this backdrop, the term “physical AI” has emerged — a new way of describing the software and computing systems that power technologies like humanoid robots and autonomous vehicles. With the integration of AI, robotics can advance from performing basic tasks to handling complex, decision-making processes that were once exclusive to human workers. As a result, robotics is set to revolutionize industries, change market dynamics, and expand the limits of machine capabilities.

Even more importantly, a growing number of top executives see tremendous opportunities across multiple sectors where robotics can lead to major breakthroughs. One of those executives is Nvidia CEO Jensen Huang, who recently stated that aside from AI, robotics is the chipmaker’s largest potential growth market, with self-driving cars expected to be the technology’s first major commercial application. “We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity,” Huang said last Wednesday during Nvidia’s annual shareholders meeting in response to a question from an attendee.

Earlier this month, Huang told CNBC in an interview at the VivaTech conference in Paris that the global autonomous vehicle (AV) and robotics sectors are poised for substantial growth in the coming years. “This is going to be the decade of AV, robotics, autonomous machines,” he said.

Both AV and robotics are projected to experience exponential growth over the next decade. According to Precedence Research, the global AV market was valued at $207.38 billion in 2024 and is expected to surge to about $4.5 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 36.3%. Moreover, the same research firm projects that the global advanced robotics market will grow from $53.74 billion in 2025 to $280.01 billion by 2034, representing a CAGR of 20.13% over the forecast period. It’s also worth noting that as more real-world applications or breakthroughs emerge, these projections could be significantly revised upward.

Meanwhile, Nvidia is not new to the robotics and AV space. The company offers the chips and the training data required to run robots in factories. Moreover, it sells both hardware and software solutions for AVs, including the Nvidia DGX platform, which trains self-driving cars on various driving scenarios. Notably, a little over a year ago, Nvidia revised its reporting structure by combining its automotive and robotics divisions into a single business segment. In the latest quarter, revenue from the automotive and robotics segment stood at $567 million, up 72% year-over-year, driven by sales of the company’s self-driving platforms. 

Although robotics currently represents a modest portion of Nvidia’s revenue — around 1% in Q1 — Huang noted that applications will rely on the company’s data center AI chips to train the software, along with other chips embedded in AVs and robots. Huang emphasized Nvidia’s Drive platform of chips, and software for AVs. Notably, Nvidia Drive made its debut at VivaTech as an AV development platform designed to help automakers build self-driving cars. He also mentioned that the company recently released AI models for humanoid robots, known as Cosmos.

“We’re working towards a day where there will be billions of robots, hundreds of millions of autonomous vehicles, and hundreds of thousands of robotic factories that can be powered by Nvidia technology,” Huang said. 

What Do Analysts Expect for NVDA Stock?

Wall Street analysts remain highly bullish about Nvidia’s growth prospects, as reflected in the “Strong Buy” consensus rating. Out of the 44 analysts covering the stock, 37 have a “Strong Buy” rating, three recommend a “Moderate Buy,” another three suggest holding, and one rates it as a “Strong Sell.” The mean price target for NVDA stock stands at $176.62, suggesting potential upside of 12% from Friday’s closing price.

Meanwhile, Loop Capital last Wednesday raised its price target on NVDA stock to a Street-high of $250, from $175, citing what it described as a “$2 trillion AI data center opportunity” by 2028. “We are entering the next ‘Golden Wave’ of Gen AI adoption and NVDA is at the front-end of another material leg of stronger-than-anticipated demand,” wrote analyst Ananda Baruah.

Nvidia is projected to deliver solid growth in FY26, though the pace is expected to slow compared to previous years. Analysts tracking the company forecast a 43.38% year-over-year growth in its adjusted EPS to $4.29 for this fiscal year, while its top line is estimated to advance 53.01% year-over-year to $199.68 billion.

In terms of valuation, NVDA’s forward P/E ratio (Non-GAAP) of 36.80x isn’t exactly cheap — but that’s to be expected from the world’s most valuable company. For a company that has a dominant position in one of the fastest-growing markets, the valuation still appears reasonable.