It's no secret that Nvidia (NVDA 4.14%) currently stands at the center of the artificial intelligence (AI) boom. The company's GPUs are the gold standard for powering AI models. It's also no secret that AI is critical to developing the next generation of robots.
Unsurprisingly, therefore, Nvidia is an important player in robotics technology. And the company thinks it just unleashed a robot revolution. Is it time to buy Nvidia stock hand over fist?
NASDAQ: NVDA
Key Data Points
Ushering in a new age of robots
Last week, Nvidia announced several new technologies that it claimed would "supercharge humanoid robot development." Nvidia Isaac GR00T N1 was the centerpiece of the company's new offerings. The company introduced GR00T N1 as "the world's first open, fully customizable foundation model for generalized humanoid reasoning and skills."
Nvidia revealed that this new foundation model uses an architecture inspired by how humans think. The System 1 version mirrors human reflexes, while the System 2 version makes deliberate and methodical decisions.
The company also introduced simulation frameworks and blueprints for robotic development. The Nvidia Isaac GR00T Blueprint supports generating synthetic data. Newton is an open-source physics engine Nvidia is developing with Alphabet's Google DeepMind and Disney Research. Nvidia said that Newton "lets robots learn how to handle complex tasks with greater precision."
"The age of generalist robotics is here," according to Nvidia CEO Jensen Huang. He stated, "With Nvidia Isaac GR00T N1 and new data-generation and robot-learning frameworks, robotics developers everywhere will open the next frontier in the age of AI."
Just the beginning
These new robotic development offerings are just the beginning. Nvidia said that GR00T N1, which is already available, is the first of multiple models the company will launch for robotics developers.
Disney Research is among the first organizations deploying Newton. The unit is using Nvidia's engine to develop next-generation entertainment robots including the BDX droids inspired by Disney's Star Wars franchise.
Kyle Laughlin, senior vice president of Walt Disney Imagineering research and development, said, "The BDX droids are just the beginning. We're committed to bringing more characters to life in ways the world hasn't seen before, and this collaboration with Disney Research, Nvidia, and Google DeepMind is a key part of that vision." Laughlin added, "This collaboration will allow us to create a new generation of robotic characters that are more expressive and engaging than ever before -- and connect with our guests in ways that only Disney can."
Entertainment isn't the only goal for the next generation of robots powered by Nvidia's technology, though. The company said that its models will accelerate the development of robots to help industries that face significant labor shortages.
Buy Nvidia stock hand over fist?
Are Nvidia's new robotics products a good reason to buy the stock hand over fist right now? Not on their own. For one thing, new products don't always live up to the hype. Also, it remains to be seen how much Nvidia GR00T N1 and the simulation frameworks and blueprints will move the needle for a company that generated $130.5 billion last year.
However, the potential to pave the way for a new age of robots could be one of several reasons to buy Nvidia stock. The market opportunity is huge, with global labor shortages estimated at more than 50 million people.
Another more compelling near-term reason to consider investing in Nvidia is the likely growth of its new Blackwell GPU architecture. Huang said in the company's fourth-quarter earnings call, "The demand for Blackwell is extraordinary."
Despite the beginning of a rebound, Nvidia's share price remains nearly 20% below its peak set earlier this year. Buying Nvidia on such pullbacks has always paid off handsomely in the past. History just might repeat itself.
