Can Nvidia achieve another year of unprecedented success?

Nvidia's Meteoric Rise in the Age of Artificial Intelligence

Jensen Huang, the founder and CEO of Nvidia, recently showcased the company’s latest computer chips during an event in Las Vegas, highlighting Nvidia’s central role in the AI revolution.

(John Locher / Associated Press)

Nvidia shattered records in 2025, propelled by the global surge in artificial intelligence, and claimed the title of the world’s most valuable company.

Now, the Santa Clara-based tech leader is preparing to maintain its dominance for another year.

“The competition for AI supremacy is underway,” declared Jensen Huang at the CES trade show in Las Vegas. “Everyone is striving to reach the next breakthrough, to explore new frontiers.”

At 62, Huang—sporting his signature black crocodile leather jacket—shared his bold vision for a future where intelligent machines, from autonomous vehicles to advanced robots, seamlessly interact with people in the physical world.

As a driving force behind the AI surge, Nvidia has also faced skepticism about whether the massive investments in AI firms are creating an unsustainable bubble. Some fear that these companies are overvalued and that the bubble could eventually burst.

Nvidia has played a significant role in this trend, backing companies like OpenAI, Intel, CoreWeave, and supporting Elon Musk’s xAI initiative.

This remarkable ascent is especially notable for a company that, just five years ago, was relatively unknown outside of tech circles.

Industry experts predict that the AI boom is unlikely to end soon, and even if a downturn occurs, Nvidia is expected to remain resilient due to its dominance in high-performance AI chips and its ongoing innovation.

“Nvidia is well-positioned for continued success,” said Gil Luria, head of technology research at D.A. Davidson. “It’s a testament to how integral AI tools have become.”

How Has Nvidia Thrived Amid the AI Explosion?

Founded by Jensen Huang in 1993 after his engineering studies at Stanford, Nvidia initially gained recognition for its specialized chips used in gaming, cryptocurrency mining, AI development, and robotics.

Today, Nvidia employs over 36,000 people in 38 countries, with its main design operations in California and manufacturing largely based in Asia. The company has also announced plans to produce Blackwell chips in Arizona and build AI supercomputers in Texas through partnerships with manufacturers.

In November, Nvidia reported a record $57 billion in third-quarter revenue, marking a 62% increase from the previous year. The company also revealed it had secured $500 billion in AI chip orders through 2026.

By the end of last year, Nvidia became the first company to surpass a $5 trillion market valuation, boosting Huang’s personal fortune to over $160 billion.

Nvidia has also forged major alliances, including a pledge to invest up to $100 billion in OpenAI. OpenAI plans to use Nvidia’s systems to build and operate at least 10 gigawatts of AI data centers.

These data centers are critical for processing the vast amounts of information required to train and operate advanced AI systems.

How Is Nvidia Maintaining Its Leadership?

Nvidia is working to ensure its chips are at the heart of every new AI-powered breakthrough. Due to high demand and limited supply, leading global brands are eager to collaborate with Nvidia.

Huang highlighted the company’s partnership with Mercedes-Benz, which utilizes Nvidia’s autonomous vehicle technology.

“We envision a future where a billion cars on the road are self-driving,” Huang said, suggesting that robotaxis and personal autonomous vehicles could soon become commonplace.

The first self-driving car powered by Nvidia’s technology is set to debut in the United States soon, with launches in Europe and Asia to follow.

Huang also demonstrated Nvidia’s suite of AI tools designed to help autonomous vehicles navigate complex traffic scenarios.

In a demonstration video filmed in San Francisco, a Mercedes-Benz equipped with Nvidia’s technology safely yielded to pedestrians and other vehicles.

During his presentation, Huang was joined on stage by robots of various shapes and sizes, illustrating how Nvidia’s technology is advancing robotics for tasks ranging from food delivery to heavy lifting and even surgery.

Nvidia’s latest AI chip, named after astronomer Vera Rubin, has entered full-scale production.

Huang also discussed how Nvidia’s products are being used to develop personal assistants and described an expanded partnership with Siemens to integrate AI into industrial design and manufacturing processes.

The company has also deepened its ties with the entertainment sector, partnering with Universal Music Group to promote responsible AI in music discovery, creation, and engagement.

What Lies Ahead for Nvidia?

Nvidia’s recent initiatives are expected to drive further growth as the company seeks to generate even greater demand for its products.

“The era of massive AI investment began with Jensen Huang and Nvidia, whose chips have become as valuable as gold or oil,” analysts at Wedbush Securities wrote in a recent note.

According to Wedbush, robotics and autonomous technologies present significant new opportunities for Nvidia, potentially pushing its market value to $6 trillion.

However, as more autonomous vehicles hit the roads, companies may face challenges in convincing both regulators and the public to embrace self-driving technology, noted Luria.

“It seems almost certain,” he said. “The real question is when—will it happen soon, or will it take another decade or two?”

What Challenges Could Nvidia Encounter?

Despite its leadership in AI, Nvidia faces uncertainties in the Chinese market, which could be worth $50 billion annually. The company is also affected by tariffs and trade restrictions.

Nvidia has lobbied the U.S. government to relax export controls on AI chips, aiming to sell its H200 chips to Chinese firms.

Both President Trump and technology leaders have voiced concerns about China’s potential to surpass the U.S. in AI, raising national security issues. However, Huang has cultivated a strong relationship with Trump, and the H200 is not Nvidia’s most advanced chip.

In a unique arrangement, Trump agreed to allow Nvidia to sell H200 chips to China, provided the U.S. receives a 25% share of the sales.

Huang stated at CES that demand for these chips in China is “very high,” though there are doubts about whether these sales will proceed.

According to The Information, Chinese authorities have instructed some domestic tech firms to suspend orders for H200 chips and may require them to purchase locally made AI chips instead.

This article was originally published by the Los Angeles Times.