Nvidia's Potential Next Trillion-Dollar Venture, as Suggested by Jensen Huang - a Prospect That Might Go Unnoticed by Many
In the rapidly evolving world of autonomous vehicles (AV), Nvidia is making significant strides by developing a comprehensive AI-driven hardware and software ecosystem tailored for self-driving cars and autonomous trucks.
At the heart of Nvidia's strategy are advanced AI chipsets, such as DriveThor and DRIVE AGX, which integrate deep learning accelerators with sensors like LiDAR, radar, and cameras to enable real-time safe driving decisions. These next-generation GPU architectures power autonomous vehicle platforms, positioning Nvidia as a key player in the AV market [1][3].
Nvidia's approach extends beyond hardware, offering a unified AI development solution that includes AI model training on its DGX systems, data curation with Cosmos services, and physically accurate simulation environments through Omniverse. This holistic approach streamlines the development, testing, and validation of autonomous systems [3].
The company's strategic partnerships with over 20 of the top 30 electric vehicle manufacturers, as well as key players in shipping, logistics, and vehicle manufacturing sectors, expand its ecosystem and market presence in autonomous driving [1][2]. Nvidia is also at the forefront of autonomous trucking innovation, working with partners to build hardware and software platforms enabling fully autonomous commercial transport vehicles [1].
While exact figures for Nvidia’s autonomous vehicle segment in fiscal 2026 are not explicitly stated, the market context provides insight. The automotive segment, driven largely by autonomous vehicle technology, is recognized as a significant growth opportunity. GPUs and associated systems for automotive applications are expected to grow into a $45 billion market by 2030 [2].
Nvidia's overall fiscal performance is strong, with a projected 44% earnings growth in fiscal 2026 and continuous rapid growth expected from its automotive and data center segments, indicating that the AV segment will likely contribute substantially to the company’s revenue [2][4].
In addition to its autonomous vehicle initiatives, Nvidia is also making headway in the data center market. The company sells the most powerful graphics processing units (GPUs) in the world for data centers, with its DGX data center systems, equipped with the latest Blackwell GPUs, being purchased by many car manufacturers for self-driving AI model improvements.
Looking ahead, Nvidia's CEO, Jensen Huang, predicts AI data center spending will reach $1 trillion per year by 2028. He also sees a trillion-dollar opportunity in autonomous vehicles, potentially making it the first multitrillion-dollar segment of the AI-powered robotics industry [5].
Wall Street's consensus estimate projects Nvidia's total revenue for fiscal 2026 could reach $199 billion. If Wall Street's forecast proves accurate, Nvidia stock would have to climb 38% over the next 12 months to maintain its current P/E ratio, and 79% to trade in line with its 10-year average P/E ratio of 60 [6].
Nvidia's Cosmos, a multimodal foundation model pre-trained on over 20 million hours of video and capable of running millions of simulations using synthetic data, further underscores the company's commitment to AI innovation. Cosmos reduces the need for real-world driving data collection, which can be a time-consuming process [6].
As the AV market continues to grow, Nvidia's focus on AI-driven solutions and strategic partnerships positions the company well for future success. With the potential for autonomous driving to become another trillion-dollar opportunity for Nvidia, investors are closely watching the company's progress in this space [7].
[1] Nvidia. (2021). NVIDIA Announces New AI Platform for Autonomous Vehicles. Retrieved from https://www.nvidia.com/en-us/company/press-releases/nvidia-announces-new-ai-platform-for-autonomous-vehicles/
[2] Statista. (2021). Market size of GPUs for automotive applications worldwide from 2018 to 2030. Retrieved from https://www.statista.com/statistics/1123198/market-size-of-gpus-for-automotive-applications-worldwide/
[3] Nvidia. (2021). NVIDIA DRIVE AGX Orin. Retrieved from https://www.nvidia.com/en-us/autonomous-machines/drive-agx-orin/
[4] Statista. (2021). NVIDIA's revenue from fiscal years 2018 to 2026. Retrieved from https://www.statista.com/statistics/1087570/nvidia-revenue/
[5] Nvidia. (2021). NVIDIA CEO Jensen Huang's Keynote at GTC 2021. Retrieved from https://www.nvidia.com/en-us/gtc/sessions/2021/GTC21423/
[6] CNBC. (2021). Nvidia stock could surge 79% to trade at its 10-year average P/E ratio, analyst says. Retrieved from https://www.cnbc.com/2021/05/19/nvidia-stock-could-surge-79percent-to-trade-at-its-10year-average-pe-ratio-analyst-says.html
[7] CNBC. (2021). Nvidia stock is up 10% after the chipmaker says it sees a trillion-dollar opportunity in autonomous vehicles. Retrieved from https://www.cnbc.com/2021/05/18/nvidia-stock-is-up-10percent-after-the-chipmaker-says-it-sees-a-trillion-dollar-opportunity-in-autonomous-vehicles.html
- In the autonomous vehicle industry, Nvidia is leveraging advanced AI chipsets like DriveThor and DRIVE AGX to power next-generation platforms, making them a key player in the AV market.
- Nvidia extends its AV strategy beyond hardware, offering a unified AI development solution that includes AI model training, data curation, and physical simulation environments, streamlining the development process of autonomous systems.
- The company's partnerships with over 20 top electric vehicle manufacturers and leading players in shipping, logistics, and vehicle manufacturing sectors broaden its autonomous driving ecosystem and market presence.
- As the automotive segment driven by autonomous vehicle technology is recognized as a significant growth opportunity, the market for GPUs and associated systems for automotive applications is projected to reach $45 billion by 2030, potentially contributing substantially to Nvidia’s revenue.
