What Is Physical AI? Nvidia Is the Stock I'd Buy to Own It.
A rival chipmaker agreed last month to pay $8.2 billion in shares to push further into this area of AI.
Overview
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.
Details
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.
Source
Originally published at www.fool.com.