Nvidia (NVDA) is capitalizing on the AI trend, with major cloud companies like Amazon (AMZN), Google (GOOG, GOOGL), Meta (META), and Microsoft (MSFT) increasing their acquisition of its data center chips. Although NVDA shares have dropped 10% this year, they have grown by 27% in the past year and more than 700% since 2023. Revenues have surged from $27 billion in fiscal year 2023 to $130 billion in fiscal year 2025.

During the recent Nvidia GTC event, CEO Jensen Huang emphasized the company's focus on robotics as its next significant AI innovation. Huang aims to leverage Nvidia's AI capabilities to advance physical AI, particularly in self-driving cars and humanoid robots, highlighting their excellence in robotic safety as a key asset. He expressed confidence that their decade-long investment in this field will lead to substantial future returns, making it a major revenue stream for the company.

Nvidia's exhibition at the San Jose McEnery Convention Center showcased its robotics ventures, featuring various robots from robotic arms to human-sized bipedal robots. Different exhibits demonstrated the applications of Nvidia's technologies, including a prototype robotic ultrasound machine and Agility Robotics' Digit robot performing tasks like grasping items from a store shelf.

CEO Huang bets on the success of robot manufacturers using Nvidia's three-computer system for developing and operating robots. The system comprises Nvidia's DGX AI systems for creating AI robot models, as well as the Nvidia Omniverse system for training robots to navigate real-world scenarios in a virtual environment.