Nvidia Poised to Dominate Autonomous Vehicle Market as Shares Soar

Nvidia's shares have surged due to its involvement in the generative AI revolution. However, another technological revolution is unfolding that could be a significant long-term driver for the stock: physical AI and autonomous vehicles.

Nvidia is a leader in both fields. Its Jetson Thor supercomputer is widely considered the market leader for raw AI inference and robotics simulation. The company sells it to various robotics companies, including Boston Dynamics and Amazon Robotics, which use it for applications like computer vision to operate robots and machines.

The autonomous vehicle industry could be approaching a tipping point, with Alphabet's Waymo handling 500,000 weekly paid rides in 10 metro areas and Tesla's robotaxis available in seven cities. Nvidia has partnered with several key AV companies, including Uber, Toyota, Stellantis, Mercedes-Benz, and Chinese EV makers BYD and Geely.

Nvidia's automotive business is still small, reporting $2.3 billion in revenue in fiscal 2026, but the physical AI business is likely to deliver returns over a longer time horizon. CEO Jensen Huang sees it growing to $100 billion within the next decade.