Nvidia Targets Robotics as Next Big Opportunity Amid Rising AI Rivalry

Nvidia Corp NVDA is eying robotics as its next growth catalyst as it battles intense rivalry in its artificial intelligence chipmaking business from Advanced Micro Devices, Inc AMD.

Also, core Big Tech giants, including Amazon.Com Inc. AMZN, are competing in a space that aims to reduce their dependence on the chip designer by producing their own inbuilt chips.

Nvidia’s valuation breached the $3 trillion mark, rubbing shoulders with Apple Inc AAPL, backed by the AI frenzy. It has become a ‘physical AI’ investor by backing humanoid robotics companies like Figure AI.

Also Read: Elon Musk Reveals Toughest Part Of Building Tesla’s Humanoid Robot: ‘Improving The Design Of Optimus For Ease Of Manufacturing

Robotics company Apptronik, a Nvidia client, also tapped Alphabet Inc GOOG GOOGL Google DeepMind, underscoring the growing interest in robotics.

Nvidia will showcase its advanced technology compact computers for humanoid robots known as Jetson Thor in the first half of 2025.

Nvidia’s vice president of robotics told the Financial Times that “the ChatGPT moment for physical AI and robotics is around the corner,” adding that the market has reached a “tipping point.”

Talla told the FT that the outburst of generative AI models and the ability to train robots leveraging simulated environments drove the robotics market shift.

During Nvidia’s annual conference in March, CEO Jensen Huang voiced allegiance to the robotics sector, revealing robots powered by Nvidia’s chips. Unlike how Google supplies Android for smartphones, Nvidia intends to provide the underlying technology instead of building robots.

The global robotics market is worth $78 billion with the potential to reach $165 billion by 2029, FT cites the BCC.

Nvidia stock surged 185% year-to-date. Citi’s Atif Malik expects Nvidia’s profit margin to bottom out in the April 2025 quarter, with an upward trend expected thereafter as it addresses AI robotics demand in warehouses, manufacturing, and humanoid robot sectors.

Morgan Stanley’s Joseph Moore flagged AI PCs, autonomous vehicles, software, and robotics as potential revenue drivers for Nvidia.

Investors can gain exposure to Nvidia through JPMorgan Nasdaq Equity Premium Income ETF JEPQ and Vanguard Total World Stock Index ETF VT.

Price Action: NVDA stock is down 1.01% at $135.63 premarket at the last check Monday.

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