Progress in robotic cognition is exemplified by Cosmos Reason, which demonstrated a robot arm inferring logical actions, such as placing bread in a toaster, based on visual reasoning.

NVIDIA has been involved in robotics for over a decade, developing a comprehensive ecosystem through hardware, software, and collaborations, including partnerships with Chinese humanoid robot companies.

The robotics industry is rapidly advancing, with domestic companies like Huawei and Xiaomi increasing investments, and overseas firms like Tesla moving toward mass production.

NVIDIA CEO Jensen Huang has highlighted that the next wave of technology is physical AI, which focuses on enabling robots and autonomous vehicles to perceive, understand, and interact with the real world.

A teaser video shows Jensen Huang writing a message that a robot appears to read, emphasizing a focus on advanced human-like interactions and reasoning capabilities.

This new AI technology aims to revolutionize robotics, with Huang predicting humanoid robots could become as common as cars, indicating a significant industry shift.

Despite strong market performance, NVIDIA's stock faces scrutiny due to high valuation—around $3.1 trillion with a 55x earnings multiple—and geopolitical risks such as China's export restrictions.

Industry analysts believe that advancements in embodied intelligence and new humanoid robot models are accelerating the commercial application of robots both domestically and internationally, with significant growth potential.

Key stocks benefiting from this trend include Ubtech Robotics, Horizonrobot-W, and Hong Kong-based Robot, which have secured large procurement orders and are poised for rapid growth in humanoid robotics.

This technological breakthrough is expected to strengthen NVIDIA's leadership in AI and robotics, offering growth opportunities but also requiring caution regarding overvaluation and regulatory challenges.

This physical AI is expected to create a trillion-dollar market, with applications spanning autonomous machines like robots and self-driving cars, according to NVIDIA executives.

Physical AI involves models that utilize motion skills, allowing autonomous machines to comprehend and respond to their environment, marking a shift from perception and generative AI to agentic and physical AI phases.

NVIDIA is set to unveil a new 'brain' for robots and a humanoid robot on August 25, 2025, signaling a major milestone in its robotics development, following the recent release of its Cosmos Reason robotic visual reasoning model.