Nvidia’s Impressive Growth in Physical AI Revenue
Nvidia (NASDAQ: NVDA) reported a striking increase in its physical AI revenue, exceeding $9 billion over the trailing twelve months, a 50% rise from $6 billion in fiscal 2026. This growth is attributed to the expansion of AI from data centers to edge applications, including devices such as smartphones, drones, and autonomous vehicles. Market research firm Counterpoint Research predicts cumulative shipments of physical AI devices will reach 145 million units between 2025 and 2035, with robots and autonomous vehicles driving much of this growth.
CEO Jensen Huang noted a global investment of $5 trillion targeted at building factories, with companies like TSMC and General Motors partnering with Nvidia to implement physical AI technologies. Additionally, projections suggest that the physical AI market could generate $960 billion in annual revenue by 2033, an increase from $81 billion in 2022, positioning Nvidia well within this expanding sector.
As investments in AI infrastructure are expected to hit an annual run rate of $3-$4 trillion by 2030, Nvidia’s core data center business is projected to sustain growth. With analysts raising expectations significantly, the company’s focus on new markets, including a $200 billion addressable market for its Vera CPUs, signals strong prospects for continued expansion.
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