Nvidia (Nasdaq: NVDA) Founded in 1993, it continues to create the world’s first graphics processing units (GPUs) for computing, media, and gaming applications. Now, decades later, the company has adapted these powerful chips for data centers, where they are used to develop advanced artificial intelligence (AI) models.
Nvidia CEO Jensen Huang believes data center operators will spend $1 trillion over the next four years modernizing their infrastructure to meet demand from AI developers. Since the data center segment currently represents 88% of Nvidia’s total revenue, this spending will be beneficial to the company’s future success.
However, the semiconductor industry has always been cyclical, so the data center boom will not last forever. That’s why it’s important for Nvidia to diversify its revenue streams, and at the CES 2025 technology conference on January 7, Huang delivered some startling news to investors on that front.
She saw Nvidia The self-driving revolution at. In fact, the company’s automotive business is more than two decades old, but its revenues have been so meager that it has lived in the shadow of its gaming and data center segments. All of that is about to change, because global car brands love it Mercedes Benz, Hyundai, BYD, Volvo, Toyotaand more are adopting Nvidia’s Drive platform to support their independent ambitions.
Drive provides all the internal hardware and software a car needs for self-driving capabilities. This includes Nvidia’s latest chip called Thor, which processes all the data from the car’s sensors to determine the best course of action on the road. But Nvidia’s opportunity doesn’t end there, because it also sells the infrastructure the car company needs to maintain and improve its autonomous models, so it can differentiate itself from the competition.
In addition to Drive, Huang says auto companies are buying DGX data center systems that feature the latest Blackwell-based GB200 Graphics processing unitswhich provides the computing power necessary to continuously train self-driving programs. Then there’s Nvidia’s new multimedia Cosmos enterprise model, which allows companies to run millions of real-world simulations using synthetic data, serving as training material for the software.
Overall, Huang says autonomous vehicles could be the first multi-trillion-dollar opportunity in the emerging field of robotics. He’s not alone, because Cathie Wood’s Ark Investment Management believes that technologies like autonomous ride-sharing services could create $14 trillion in enterprise value by 2027, with the majority of that value attributable to autonomous platform providers — in this case, that would be Nvidia .
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