After a series of announcements by CEO Jensen Huang about expanding its businesses, Nvidia Corp. (NASDAQ: NVDA) stock surged 4% to almost $62 per share. That put its market cap at $3.66 trillion, just shy of the $3.70 trillion at Apple Inc. (NASDAQ: AAPL). And that makes Nvidia the second most valuable company in the world.
Where Nvidia Is Headed
Investor excitement over Nvidia’s ambitious plans.
Nvidia will substantially increase the size of its business footprint. It will emphasize its old gaming products and move into the AI automotive business and robotics. Perhaps most importantly, it will put new AI products into personal computers, which could expand extremely wide access to industry-leading technology.
Huang made his announcements at the annual CES meeting, which may be the world’s largest gathering of the tech industry. According to The Wall Street Journal, he put the eventual revenue from robotics at $38 billion and the AI car business at $5 billion.
As a side note, it raises the question of whether it will compete with AI software that will power the next generations of Tesla Inc. (NASDAQ: TSLA) vehicles. That could turn an important client into a competitor as Elon Musk’s company chases fully autonomous vehicles. The new Nvidia car partnership will include Toyota, among other manufacturers.
Perhaps the most shocking comment was that Nvidia would launch a new “personal AI supercomputer” based on its flagship, Blackwell. These might be used without connection to the cloud. The Financial Times reports that these will be available in May at a $3,000 price point.
It is only a guess about how much Nvidia will compete with other tech companies outside of self-driving features. Its new products could also hurt some of these customers. However, there is no other place in town to get Nvidia-like chips, so those with objections have nowhere to go.
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