NVIDIA (NASDAQ:NVDA) has just concluded its highly anticipated GPU technology conference, and CEO Jensen Huang has no hesitation to waste time addressing Roomdemand's elephant for its next generation Blackwell Chips. He delayed concerns about slowing down AI investment, which shows that NVIDIA is looking to ship 3.6 million Blackwell units to this year's cloud provider, an understatement. Analysts believe that despite the ongoing spending patterns on customized AI chips and transfers, this rare disclosure is a deliberate move to enhance NVIDIA's dominance. Piper Sandler analysts doubled, saying demand is not only coming from the usual cloud giant, but is scrambling to ensure as much AI computing power as possible.
But, here's where things get even more interesting: physical AI. Once a futuristic buzzword, it is now turning into a potential $50 trillion market, and Nvidia wants part of it. Huang showed off the ISAAC GR00T N1, a fundamental model for human robots, which signaled Nvidia's ambitions, not just powered software-based AI. Analysts believe this could be the next major growth driver, with robotics and automation expected to disrupt the entire industry. Truist analysts pointed out that physical AI is no longer a speculative reality, thus enhancing NVIDIA's expanding role in real-world AI applications.
On the macro side, Nvidia is not idle. Huang assured investors that the company was already moving to mitigate tariff risks and had production at its Arizona plant in Taiwan Semiconductor. As for the fear of a recession? Not on Nvidia's radar. Huang argued that corporate cuts will remain unnegotiable in first investment elsewhere. Bottom line: Nvidia is not just a change in weathering markets; it positiones itself at the center of AI's next evolution.
This article first appears on Gurufocus.
