What's the 'Next Major Development' in AI? Here’s What Leaders from Nvidia and AMD Believe It Might Be

Industry Leaders Predict the Future of AI

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Lisa Su, CEO of AMD, and Jensen Huang, CEO of Nvidia, believe that real-world AI applications could spark the next significant phase in the evolution of artificial intelligence.

Main Points

• In a recent interview with CNBC, AMD's Lisa Su expressed her view that physical AI—technology powering autonomous machines like humanoid robots and self-driving vehicles—may represent the next major breakthrough in AI.

• Nvidia's Jensen Huang indicated earlier this week that a transformative moment for robotics and AI might already be underway.

According to top executives in the industry, the surge in AI innovation is just beginning. Many anticipate that the next advancements will be seen in tangible, real-world applications.

Lisa Su highlighted that AMD is prioritizing physical AI as a central part of its business strategy, focusing on technologies that enable machines to operate autonomously in the physical world.

Jensen Huang of Nvidia, who has told investors that AI-powered robotics will revolutionize various sectors, believes the industry may have reached a turning point. Nvidia recently introduced several new AI models designed to help developers create practical applications for robotics and automation.

Implications for Investors

Both Nvidia and AMD see physical AI as a key growth driver, with the potential to boost sales among current clients and attract new customers as more industries integrate AI solutions.

Huang noted that autonomous taxis are among the first to benefit from these advancements, with Nvidia's AI-based driver assistance technology set to debut in a new Mercedes-Benz model launching this year.

Analysts from Wedbush and Bernstein have praised Huang's vision for autonomous technology. Bernstein, in particular, suggested that physical AI could soon experience rapid growth, especially in the field of self-driving vehicles.

Su's remarks followed AMD's recent introduction of its latest AI products for data centers, personal computers, and physical AI at CES in Las Vegas. Nvidia, a leading competitor, also showcased its newest chips at the event.

Market analysts surveyed by Visible Alpha remain highly optimistic about Nvidia's stock, which saw a slight dip of less than 1% on Tuesday despite broader market gains. They are also generally positive about AMD shares, though those fell around 3% the same day.