Nvidia's Next 'Multitrillion Dollar' Opportunity? Jensen Huang Sees Great Potential Here: 'Stopped Thinking Of Ourselves As A Chip Company Long Ago'

Nvidia Corp NVDA CEO Jensen Huang has revealed that the company’s next major growth opportunity lies in robotics, aside from artificial intelligence (AI).

What Happened: At Nvidia’s annual shareholders meeting on Wednesday, Huang identified robotics as the company’s second-largest market for potential growth, following AI, reported CNBC.

"We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity," stated Huang.

He stated that the first significant commercial application for this technology would be self-driving cars. Despite its current relatively small size, the robotics division has seen a 72% annual increase, with $567 million in quarterly sales, accounting for nearly 1% of the company’s total revenue.

While Nvidia’s sales have surged thanks to strong demand for its data center GPUs, Huang expects the robotics sector to drive further growth—requiring the company's AI chips for software training, along with additional chips used in autonomous vehicles and robots.

Huang said Nvidia is shifting its identity toward being an "AI infrastructure" or "computing platform" provider. "We stopped thinking of ourselves as a chip company long ago," Huang says.

Huang pointed to Nvidia's Drive platform—its suite of chips and software for autonomous vehicles—currently in use by Mercedes-Benz. The company has also recently launched AI models for humanoid robots, known as Cosmos.

Why It Matters: Nvidia’s stock has been performing exceptionally well, reaching a record high on Wednesday, with the company’s market cap now standing at approximately $3.75 trillion. This makes Nvidia the most valuable company in the world, ahead of Microsoft MSFT.

This announcement comes on the heels of Nvidia’s recent rebound from a 17% drop in January, which was initially sparked by fears that China’s DeepSeek AI could challenge Nvidia’s market dominance. The stock’s recovery has been fueled by a significant easing in U.S.-China trade tensions and a stellar first-quarter earnings report on May 28.

Moreover, despite generating almost four times as much revenue as Intel INTC on an annualized basis, Nvidia trades at less than half of Intel’s forward price-to-earnings ratio.

According to Benzinga Edge Stock Rankings, Nvidia has a growth score of 98.65% and a momentum rating of 70.43%. Click here to see how it compares to other leading tech companies.