What happened
Nvidia and Microsoft are highlighted as two robotics stocks to buy and hold, with Nvidia's GR00T AI foundation model for humanoid robots and Jetson Thor supercomputer, already used by Amazon Robotics and Boston Dynamics, and Microsoft's Azure Cloud revenue accelerating 41% in Q4 2026.
Why it matters
The robotics market could reach $2.5 trillion by 2035, and Nvidia's physical AI revenue is currently $10 billion annually, expected to hit $100 billion over the next decade. Microsoft, as the second-largest cloud player with 21% market share, is positioned to benefit from AI cloud computing, which could grow from $133 billion to $780 billion by 2034.
What to watch
Nvidia's CEO Jensen Huang has set a high bar: physical AI revenue reaching $100 billion in the next decade. Microsoft's Azure Cloud annual sales have already hit $100 billion, so how these companies execute on robotics and cloud AI will be key.
Summaries like this, in your inbox every morning.
The article argues that Tesla's robotics transition is risky due to its heavy spending and EV focus, while Nvidia and Microsoft offer more established paths. Nvidia's strategy involves selling processors and providing a foundation model (GR00T) and a safety system (Halo) to enable robotics companies. JPMorgan's report indicates physical AI robots have only about 10% of human brain equivalence, suggesting significant room for improvement, which could drive demand for Nvidia's products. Microsoft's Azure cloud provides the infrastructure needed for robot updates and edge computing, and the AI cloud market is projected to grow substantially. Together, these companies tap into the $2.5 trillion robotics market, with Nvidia aiming for $100 billion in physical AI revenue over the next decade, a target that implies significant growth from its current $10 billion annual run rate.
Pick your industry and the AI tools you use, and get news related to your work every day.
Free · 30 seconds with Google · unsubscribe anytimeWhat is AIToday? →
Ask AI anything about this article. The AI reads this article, earlier AIToday articles, and Wikipedia, and cites its sources. Q&As are published on this page for other readers too.
Chunghwa Telecom president Rong-shy Lin said the shift from conversational AI to autonomous AI agents is resha…
CoreWeave fell 5% in premarket trading Friday and was on track to finish the week down 15%, after rebounding f…
Apple and Meta said they would jointly release a new open-weight AI model designed to run on high-end Macs, ai…
Investors put $38.5 billion into Asian startups in Q3, per Crunchbase data
A longtime Anthropic investor told Fortune he expects shares priced around $1.8 trillion, below the company's…
In Q2, billionaires or their funds sold six 'Magnificent Seven' AI stocks
