The announcements made by NVIDIA Chief Executive Jensen Huang at the Consumer Electronics Show on Monday are likely to further its "enormous technology lead" over the rest of the semiconductor industry and other tech companies, Wedbush Securities said.
Nvidia shares were up 2.5% in premarket trading on Tuesday, while competitors Advanced Micro Devices and Intel were fractionally higher.
"The overriding message from Jensen was a slew of new AI technology is coming out of Nvidia around robotics, autonomous technology, PCs that will further stretch their enormous technology lead vs. the rest of the semi and Big Tech landscape," analyst Dan Ives wrote in a note to clients.
"This was a major 'flex the muscles' moment for Nvidia and Jensen in this AI arms race playing out across the tech ecosystem globally."
During his keynote, Huang announced several robotics and autonomous initiatives, including Nvidia Cosmos, the world's first physical AI model that can be used to boost robotics.
Ives said the robotics and autonomous technology market represents another $1T in "incremental market opportunity" that Nvidia can expand into and help the company exceed a $4T market valuation and perhaps as much as $5T over the next 12 to 18 months.
Other announcements included the GeForce RTX 50 series GPUs, a new family of Nvidia Nemotron models based on Meta Platforms (META) Llama models, and a partnership with Toyota (TM) to work on the Japanese auto manufacturer's newest autonomous vehicles.
"We walked out of last night's event feeling even more bullish about Nvidia and the overall AI Revolution as the next stage of investments and technology around AI are on the horizon that can facilitate a new age for the technology world over the coming years," Ives added.