Nvidia's Autonomous Vehicle Push Could Send Stock to $10 Trillion

Nvidia's worth has skyrocketed from $386 billion to nearly $5 trillion since ChatGPT launched, largely due to the generative AI boom. Now, the company is poised to lead another technological revolution in autonomous vehicles and robotics, also known as physical AI. CEO Jensen Huang calls it 'physical AI', a term that encompasses not only robotics but also autonomous vehicles.

Nvidia's Jetson Thor supercomputer is the market leader for raw AI inference and robotics simulation. Companies such as Boston Dynamics, Amazon Robotics, Caterpillar, Deere, Meta, OpenAI, and Medtronic are using it to operate robots and machines in various industries. This technology has also been adopted by companies in the autonomous vehicle sector.

Nvidia's most significant automotive partnership is with Uber, which plans to deploy at least 5,000 Level 4 autonomous vehicles for a robotaxi network. The company's DRIVE AGX Hyperion AV platform will provide the brains for these vehicles. Nvidia's physical AI business is currently generating $10 billion in annual run-rate revenue and is expected to grow to $100 billion within the next decade.

Nvidia's valuation of $5 trillion and forward P/E ratio of 22 make it an attractive investment opportunity, especially considering its growth rate of 82% this year. The physical AI business provides a separate vertical from data centers and generative AI, making it less cyclical and potentially more resilient to downturns.