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Over the last two years, artificial intelligence has proven to be a very powerful technology.
We can already use the technology to find out the answers to complex questions, create stories, write computer code, translate languages, create graphics, and more. Realistically though, the technology is just getting started. In the years ahead, it’s going to be applied to robotics and other “physical” AI systems and this is where things will get really exciting.
Physical AI is the next chapter
In January, the Consumer Electronics Show (CES) 2025 took place in Las Vegas. And it kicked off with a 90-minute keynote speech by Nvidia CEO Jensen Huang, who discussed the future of AI and highlighted some new products the company has recently developed. “AI has been advancing at an incredible pace,” he told the audience. “The next phase — physical AI,” said Huang.
The largest tech industry the world has seen?
One area of AI that Huang is particularly excited about is robotics. He believes that this will be the largest technology industry the world has even seen. Huang projects that the market for humanoid robots alone will be worth nearly $40 billion within the next two decades. Some companies that are active in this space include Tesla, XPeng, and Hyundai Motor Company (which owns Boston Dynamics).
Now, physical AI models can be expensive to develop as they typically require vast amounts of real-world data and testing. To get around this issue, Nvidia has developed the Nvidia Cosmos world foundation model platform. This is a powerful software platform designed to advance the development of physical AI systems such as robots. Trained on 20 million hours of video data, it offers developers an easy way to generate large amounts of “synthetic” data to train and evaluate their AI models. It’s worth noting that Huang believes that world foundation models like Cosmos are as fundamental a tech development as the large language models (LLMs) that power generative AI apps such as ChatGPT and Gemini. And he noted that pioneers across the physical AI industry such as XPeng are already adopting the Cosmos platform.
A multi-trillion dollar industry?
Huang is also excited about the potential of self-driving vehicles. He believes that this will be the first “multi-trillion dollar” robotics industry. Here, Nvidia is working with nearly every major car company around the world to develop autonomous driving technology. From traditional car manufacturers such as Toyota and Volvo Cars to disruptive players in the market such as Tesla and Rivian, they’re all teaming up with Nvidia to develop next-generation automotive technology solutions.
During the keynote, Huang introduced Thor, Nvidia’s next-generation processor for autonomous vehicles. This is designed to process information from sensors, cameras, radars, and lidars, enabling driverless vehicles to function seamlessly. It’s worth pointing out that Thor has 20 times the processing capability of Nvidia’s current Orin processor. Orin is the standard for autonomous vehicles today.
eToro Smart Portfolios for AI exposure
If Jensen Huang’s AI predictions turn out to be accurate, there could be some big opportunities for investors in the areas of robotics and self-driving vehicles in the years ahead. In the meantime, these industries are still nascent. Those looking for portfolio exposure to these exciting areas of technology may wish to check out eToro’s AI-Revolution and Driverless Smart Portfolios. The former provides access to a wide range of AI stocks while the latter offers exposure to the entire autonomous driving ecosystem.
Another alternative to consider is the BigTech Smart Portfolio. This provides exposure to a range of companies developing AI solutions including the likes of Meta Platforms, Microsoft, and Amazon.
