Nvidia (NVDA, Financial) just wrapped up its much-anticipated GPU Technology Conference, and CEO Jensen Huang wasted no time addressing the elephant in the room—demand for its next-gen Blackwell chips. He pushed back against concerns of slowing AI investment, revealing that Nvidia expects to ship 3.6 million Blackwell units to top cloud providers this year—likely an understatement. Analysts saw this rare disclosure as a deliberate move to reinforce Nvidia's dominance, despite ongoing chatter about custom AI chips and shifting spending patterns. Piper Sandler analysts doubled down, saying demand isn't just from the usual cloud giants—everyone is scrambling to secure as much AI computing power as possible.
But here's where things get even more interesting: physical AI. Once a futuristic buzzword, it's now turning into a potential $50 trillion market, and Nvidia wants a piece of it. Huang showcased Isaac GR00T N1, a foundational model for humanoid robots, signaling Nvidia's ambition beyond just powering software-based AI. Analysts believe this could be the next major growth driver, with robotics and automation poised to disrupt entire industries. Truist analysts noted that physical AI is no longer speculative—it's becoming a tangible reality, reinforcing Nvidia's expanding role in real-world AI applications.
On the macro front, Nvidia isn't sitting idle. Huang reassured investors that the company is already moving manufacturing to mitigate tariff risks, with production at Taiwan Semiconductor's Arizona facility well underway. As for recession fears? Not on Nvidia's radar. Huang argued that enterprises cutting costs will look elsewhere first—AI investments remain non-negotiable. Bottom line: Nvidia isn't just weathering market shifts; it's positioning itself at the center of AI's next evolution.
