The stock of Nvidia is still dazzling and possibly has even higher growth prospects to look forward to courtesy of robots. During the VivaTech technology conference in Paris, Jensen Huang. The company CEO unveiled his ambitious vision for the future. He thinks that one of the largest industries in the world might be humanoid robotics. This is not by any sense a scientific fiction fantasy; it may end up being the future of Nvidia as well as its investors.
In January, Nvidia unveiled a humanoid robot named AEON, designed together with a Sweden-based technological company Hexagon. Nvidia is not fooling around about commitment regarding dominance in the field of robotics. Robots, particularly the ones with the ability to think, learn and move just the same way human beings do may transform sectors such as manufacturing and healthcare.
But currently the robotics and automotive arm of Nvidia makes only a minor contribution to the business bringing in $1.7 billion in sales last year. However, pundits believe that figure will be increased to $7.55 billion in the early years of the 2030s. Those forecasts may even be higher in case robotics ever becomes a phenomenon as Huang predicts them.
The capitalization of Nvidia has been able to gain prominence this year. It will rise by 19% by 2025. The company has become the most valuable in the world with a market cap of approximately $4 trillion. This influx occurred in spite of the previously held concerns about the prohibition of U.S. chip exports to China. Following a few setbacks or investors appear to have been able to overcome the worst of those concerns.
In spite of the stock slowing down during the third-quarter session which can normally maintain an increase of nearly 4%, good news. History demonstrates that the best performance of Nvidia is in the last three months of the next year with about a 23% increase.
Nvidia has already established its name in AI and chips. Perhaps the next driver can be robots. Provided Huang is correct whereby robotics becomes a huge industry. The Nvidia may find itself in the centre of investors that could be a long way not to be over yet. The company is not merely enjoying the AI trend but also making the next one.
