By Daniel Sparks, The Motley Fool
Publication Date: 2026-10-10 00:01:00
Physical AI is the name Nvidia (NASDAQ:NVDA) uses for artificial intelligence (AI) that works in the real world instead of onscreen. Picture the software that lets a warehouse robot lift a box, or a car steer itself through traffic. A chatbot just has to write an answer, but physical AI has to see what’s around it and then choose what to do.
Rivals want in. Advanced Micro Devices (NASDAQ:AMD) said on Sept. 28 that it had agreed to buy World Labs, a start-up that makes AI models of 3D spaces and tools for training robots, in an all-stock deal worth around $8.2 billion.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
But for Nvidia, physical AI is still a small business in a huge firm. Its automotive revenue was around $2.35 billion over the 12 months through late January 2026 (Nvidia’s fiscal 2026), or about 1% of its total revenue of $215.9 billion. Even Nvidia’s broader physical AI number, around $6 billion in fiscal 2026, is below 3% of sales.
That doesn’t worry me. Actually, I think that’s one reason Nvidia is the simplest way for investors to own this trend.
Image source: Nvidia.
Nvidia already sells to robot and car makers
A physical AI system needs a few things. Its AI model has to be trained, which takes racks of powerful data center chips. It helps…
