The Nvidia (NVDA -0.66%) GPU Technology Conference (GTC) has rapidly emerged as a premier event within the artificial intelligence developer community, especially in recent years. During the keynote address delivered by CEO Jensen Huang at this year’s conference, he shared several compelling insights regarding the future trajectory of AI technology and discussed Nvidia’s pivotal role in shaping that future.
If you are currently holding Nvidia shares or contemplating an investment, it is essential to be aware of these three critical updates that could significantly influence your decisions.
1. Anticipating the Arrival of the Revolutionary Rubin Architecture
Nvidia has recently launched its latest and most advanced graphics processing units (GPUs), engineered using the cutting-edge Blackwell architecture, and the demand has been nothing short of phenomenal. With nearly every developer and platform striving to harness the power of AI, Nvidia stands out with its superior products designed to facilitate those ambitions. In the fourth quarter of fiscal year 2025, which concluded on January 26, Nvidia reported an astounding 78% revenue growth year-over-year. Huang emphasized that the company has already secured billions in sales of the Blackwell GPUs within their initial quarter on the market. Major tech giants, equipped with the budgetary means to construct expansive AI data centers, are eager to acquire the best technology available to maintain their competitive edge.
Looking ahead, Nvidia is diligently working on its next generation of powerful chips, known as the Rubin architecture. These innovative chips are projected to deliver an astonishing 14 times more power than their Blackwell predecessors. As the requirements of AI continue to evolve and expand, it is clear that companies engaged in the development and support of AI software will seek out the most powerful chips available. The launch of Rubin is anticipated for late next year, and it is expected to redefine performance benchmarks in the industry.
2. The Power Demands of Agentic AI: Preparing for the Future
Agentic AI represents one of the forthcoming waves in the artificial intelligence landscape. These sophisticated tools are designed to operate as “agents” on behalf of users, autonomously executing tasks such as booking flights or drafting emails based on simple prompts. This shift towards more autonomous systems will necessitate a significant leap in computational power.
According to Huang, he foresees that agentic AI will require up to 100 times more power than the current generation of AI tools. He believes that those who assume the introduction of tools like DeepSeek—which were reportedly less expensive to develop than previous large language models—will undermine Nvidia’s sales are fundamentally mistaken. The substantial power requirements inherent in agentic AI will inevitably lead to an increased demand for Nvidia’s advanced chips. While some competitors offer similar products, Nvidia continues to dominate the market in terms of production, sales, and innovation of cutting-edge GPUs and AI accelerators.
3. Nvidia’s Strategic Preparedness for the Robotics Revolution
Before establishing itself as a household name, Nvidia gained recognition as a leading company and stock primarily due to its strengths in the video game industry. Leveraging its extensive expertise in creating immersive worlds for gaming products, Nvidia is now poised to integrate these capabilities with its advanced reasoning technologies to excel in what is termed “physical AI.” This refers to robots that possess the ability to “think” and undertake actions. Huang stated emphatically, “Everyone, pay attention. This could very well be the largest industry of all.”
To bolster its position in this exciting field, Nvidia recently announced two pivotal partnerships—one with General Motors focusing on electric vehicles, and another collaboration with Walt Disney and Alphabet aimed at advancing robotics development. These strategic alliances underline Nvidia’s commitment to leveraging its technological prowess to shape the future of robotics.
Assessing the Investment Potential of Nvidia Stock
Currently, Nvidia’s stock is down by 12% this year and is trading 21% lower than its peak. Despite the company’s remarkable financial performance last year and the tech sector’s unwavering demand for its innovative products, the stock market reacted negatively to the launch of DeepSeek, leaving investors cautious about Nvidia’s future. While Nvidia appears formidable at present, it is essential to recognize that history has shown even industry giants can be caught off guard by more nimble competitors wielding superior technology.
However, Huang does not seem to share these concerns. He perceives the DeepSeek model as a win for the overall AI industry and envisions that more affordable AI models will further stimulate demand for Nvidia’s offerings. If you already own shares of Nvidia, there is no need for excessive worry, but it would be prudent to ensure that your investment does not become disproportionately large within your portfolio. If you have experienced significant gains from Nvidia’s impressive rise over the past few years, it may be wise to consider divesting some shares to maintain a balanced and diversified portfolio, thereby minimizing your overall investment risk.
For those who do not yet own Nvidia stock, this may be an opportune moment to invest, as it is currently trading at a valuation of only 21 times forward 1-year earnings. Given this attractive pricing, it could be a favorable time to establish a position in Nvidia.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jennifer Saibil has positions in Walt Disney. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Walt Disney. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
