NVIDIA's Robotics Push: Will AI Robotics Drive a New Growth Phase?

NVIDIA Corporation NVDA is expanding its focus beyond data centers by pushing deeper into robotics and physical artificial intelligence (AI). The company is building platforms that combine graphics processing units (GPUs), software and simulation tools to support the development of intelligent machines. These systems are used in areas such as factory automation, logistics, autonomous vehicles and service robots.

As labor shortages and efficiency needs rise, interest in AI-powered robotics is increasing. The independent research firm Mordor Intelligence estimates that the global robotics market will reach $218.56 billion by 2031 from $73.64 billion in 2025, reflecting a CAGR of 19.86% over the period.

NVIDIA’s robotics strategy centers on providing a full stack rather than selling chips alone. Developers can train models on powerful servers, test them in virtual environments and deploy them on edge systems. This approach helps shorten development cycles and improve reliability.

NVIDIA has been witnessing growing adoption of its robotics technologies. Companies such as Belden, Caterpillar, Foxconn, Lucid Motors, Toyota, TSMC and Wistron have adopted its robotics technologies to build factories that have accelerated AI-driven manufacturing.

NVIDIA’s robotics business forms part of its Automotive segment. In the third quarter of fiscal 2026, the Automotive segment’s revenues increased 32% year over year to $592 million. Though the Automotive segment contributes just 1% to total revenues at present, the growing demand for robotics is likely to drive the business unit’s growth over the long run. The Zacks Consensus Estimate for the Automotive segment’s fiscal 2026 revenues is pegged at $2.41 billion, indicating year-over-year growth of 42.2%.

How NVIDIA’s Rivals Fare in AI Robotics Space

NVIDIA competes with Intel Corporation INTC and Advanced Micro Devices, Inc. AMD in the AI robotics space.

Intel offers comprehensive robotics solutions, focusing on enabling physical AI through a combination of high-performance edge computing hardware, AI software toolkits and computer vision technologies. Intel’s Robotics AI suite combines reference applications, simulation tools, and libraries to help developers build and deploy AI-powered robots faster.

Advanced Micro Devices provides the underlying chip, System-on-Modules (SOMs), and software stacks that enable faster, more intelligent and responsive robotic systems. Advanced Micro Devices’ core robotics technologies include Kria series SOMs, robotics starter kit and Ryzen embedded processors.

NVIDIA’s Price Performance, Valuation and Estimates

Shares of NVIDIA have risen around 53.7% over the past year compared with the Zacks Semiconductor – General industry’s gain of 48.9%.

NVIDIA One-Year Price Return Performance

From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 26.22, lower than the industry’s average of 28.39.

NVIDIA Forward 12-Month P/E Ratio

The Zacks Consensus Estimate for NVIDIA’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 55.9% and 57%, respectively. Estimates for fiscal 2026 have been revised upward by 2 cents to $4.66 per share in the past 60 days. Earnings estimates for fiscal 2027 have been revised upward by 8 cents to $7.32 per share in the past 30 days.

NVIDIA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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