Nvidia (NVDA, Financials) isn’t just the chip king anymore; it’s turning its gaze toward something even bigger humanoid robots. As the company brushed up against a $3.89 trillion market cap this week, CEO Jensen Huang took the stage in Paris and said it plainly; robotics, he believes, could become the largest industry in the world.
That might sound ambitious; then again, so did AI a few years ago and Nvidia now dominates that space too. At the VivaTech conference, Huang introduced AEON: a full-stack humanoid robot developed with Sweden’s Hexagon (HXGBY, Financials). It’s not a mock-up or sci-fi concept; it’s built, operational, and aiming straight for real-world deployment.
Forecasts are starting to catch up. Nvidia’s robotics and automotive division brought in $1.7 billion in fiscal 2024; analysts now expect that number to hit $7.55 billion by the early 2030s. If AEON gains commercial ground and it might those projections could prove too modest.
Earlier this year, things looked shakier. U.S. chip export curbs to China sparked some turbulence; Nvidia stock dipped, and traders got nervous. But the pause didn’t last; the stock is now up 19% for the year and once again holds the crown as the world’s most valuable public company. The bigger story? That crown might soon be gilded in robotics, not just silicon.
There’s also seasonality working in Nvidia’s favor. Historically, Q3 tends to be quiet a 4% average gain. But Q4 is where things pop; Nvidia has averaged a 23% rally in the final quarter, according to Dow Jones data. That pattern, paired with the robotics momentum, could set the stage for a breakout into even higher valuation territory.
Nvidia is already in a class of its own a company that not only scaled the AI summit, but may now have the tools to build entirely new mountains. Other tech giants are maturing; Nvidia still has untouched runways. Robotics may be the next trillion-dollar catalyst and Huang knows it.
As of this week, Nvidia is just $50 billion shy of Microsoft’s (MSFT, Financials) all-time market cap peak. That number could fall by next week; or even tomorrow.
This article first appeared on GuruFocus.
