There’s Another New Reason to Get Bullish on Nvidia Stock

Nvidia (NVDA), the game-changing backbone of the artificial intelligence boom, is now betting that the next major wave of AI will exist in the Physical AI world by walking, moving, lifting boxes, operating machinery, and working with humans.

In fact, that’s the idea behind Nvidia’s Halos for Robotics, which, according to the company, is the industry’s first full-stack open safety system for physical AI and robotics. The platform is designed to help robots and humanoids operate safely in human environments by combining AI computing software, including IGX Thor and the Holoscan Sensor Bridge for AI, with safety operating systems using Nvidia Halos OS. Even better, it’s already seeing early adoption.

In fact, the AI company Agility is the first to integrate Halos for Robotics, which is using the system to embed safety features into its Digit humanoid robot, which was designed for industrial work in logistics, manufacturing, and warehouse operations, as noted in an Nvidia press release. “For Digit, NVIDIA IGX Thor delivers industrial-grade AI compute with built-in safety capabilities, while Halos Core supports the software layer for safety-related operating functions.”

Humanoid Robots Could be Worth Trillions in the Next 10 Years

That’s according to Wedbush analyst Dan Ives, who argues humanoid robots could be one of the biggest opportunities in the AI boom. The market will be worth trillions of dollars over the next decade, Ives added, as noted by CNBC, and “will change the way consumers and businesses operate over time.”

According to Zornitza Todorova, head of thematic FICC research at Barclays, “Humanoid robotics is really on an upward trajectory. The size of the market today is really small; it’s 2 to 3 billion [dollars], but we see it going up to $200 billion in 2035,” as also quoted by CNBC. In addition, Morgan Stanley says that humanoid robots could represent a nearly $5 trillion market by 2050. The firm’s latest projections forecast $4.7 trillion in global humanoid revenue by mid-century. And, according to Goldman Sachs, humanoid robot demand could reach a $38 billion total addressable market by 2035, while Bank of America believes global shipments will grow from just 18,000 units in 2025 to 10 million units by 2035.

Even better for Nvidia, whenever humanoid robots do go mainstream, the industry cannot scale without safety issues being addressed. The company is betting that if physical AI becomes the next big thing in technology, the companies enabling safe deployment around people will be just as important as the robots themselves. Nvidia intends to be at the center of that story, too.

Nvidia's Earnings Growth Isn’t Too Shabby Either

In its most recent quarter, Nvidia posted EPS of $1.87, which beat estimates by 10 cents. Revenue of $81.62 billion, up 85.2% year-over-year (YoY), beat by $2.65 billion. It also saw record data center revenue of $75.2 billion, up 92% YoY. Moving forward, Nvidia expects to see revenue of about $91 billion, plus or minus 2%. Analysts were only looking for $87.3 billion. Adjusted non-GAAP margins are expected to be about 75%, plus or minus 50 basis points. Fueling more momentum, the company added $80 billion to its buyback program and raised its quarterly dividend to 25 cents, which will be paid on June 26 to shareholders of record as of June 4.

What Do Other Analysts Say About NVDA Stock?

Of the 49 analysts covering NVDA stock, 43 analysts have a “Strong Buy,” three have a “Moderate Buy,” two analysts offer a “Hold” rating, and one has a “Strong Sell.” The mean target price of $303.71 implies roughly 52% potential upside from current levels. Meanwhile, the high-end target of $500 implies as much as 150% possible growth from here. If robotics and humanoid adoption scale even a fraction of what analysts are projecting, the demand for compute, simulation, and safety infrastructure could become another meaningful and substantial catalyst for Nvidia.