At the Fontainebleau Las Vegas, Nvidia founder and CEO Jensen Huang delivered a sweeping keynote address that left Wall Street analysts bullish and competitors scrambling. Over nearly two hours, Huang laid out a vision where artificial intelligence moves from the digital realm into the physical world—powering robots, autonomous vehicles, and industrial systems that could transform the global economy.

The Rubin Platform: Next-Generation AI Computing

The centerpiece of Huang's presentation was Nvidia's Rubin platform—the successor to the current Blackwell architecture that has driven the company's extraordinary growth. Rubin represents an integrated ecosystem of six distinct chips, co-designed to function as a unified AI supercomputer.

According to Nvidia, Rubin aims to "push AI to the next frontier" while slashing the cost of generating AI tokens to roughly one-tenth that of the previous platform. For companies deploying AI at scale, this efficiency improvement could dramatically change the economics of AI applications.

"We are at the beginning of a new industrial revolution, one powered by AI that understands and operates in the physical world."

— Jensen Huang, Nvidia CEO

Physical AI: The Next Frontier

The defining buzzword of CES 2026 was "physical AI"—Nvidia's term for AI models trained in virtual environments using computer-generated synthetic data, then deployed as physical machines once they've mastered their purpose.

This concept extends AI beyond chatbots and image generators into tangible applications:

  • Autonomous vehicles: Self-driving cars and robotaxis that navigate real-world roads
  • Industrial robotics: Manufacturing robots that adapt to changing conditions
  • Humanoid robots: General-purpose machines capable of complex physical tasks
  • Automated warehouses: Logistics systems that coordinate thousands of moving elements

Huang introduced Alpamayo, an open reasoning model family specifically designed for autonomous vehicle development. Nvidia confirmed it's working with robotaxi operators to power fleets with its AI chips and Drive AV software by as soon as 2027.

Partnership Expansion

The keynote featured high-profile partnership announcements that underscored Nvidia's expanding influence across industries:

Siemens Partnership

Huang appeared alongside Siemens President and CEO Roland Busch to announce an expanded collaboration aimed at reinventing manufacturing, production, and supply chain management using AI. The partnership targets the industrial sector—an enormous market that has been slower to adopt AI than tech companies but represents massive long-term potential.

Nuclear Fusion Initiative

In a surprise announcement, Commonwealth Fusion Systems, Nvidia, and Siemens revealed they're working together to use AI to accelerate nuclear fusion development—potentially creating a new source of carbon-free energy. The collaboration demonstrates how AI is being applied to scientific challenges previously considered intractable.

Wall Street Reaction

Analysts emerged from Huang's keynote largely positive, though with some nuanced takes on timing and valuation:

JPMorgan analyst Harlan Sur noted that Nvidia's physical AI products "could potentially drive the next leg of revenue growth" for the company. Wells Fargo and Piper Sandler praised Rubin's unique design and anticipated faster adoption than previous chip generations.

The consensus price target suggests approximately 33% potential upside over the next year, according to LSEG data. Of the 64 analysts covering Nvidia, 60 maintain "Buy" or equivalent ratings—an extraordinary level of conviction for a company of this size.

"The development of physical AI products could potentially drive the next leg of revenue growth for the company."

— Harlan Sur, JPMorgan

Partner Stock Performance

Companies mentioned in Nvidia's announcements saw immediate market reactions:

  • Vistra Energy (VST): Jumped on its nuclear power deal with Meta, with shares up more than 15%
  • Oklo: Shares rose as much as 19% on nuclear AI partnership developments
  • Siemens: European shares gained following the expanded Nvidia partnership announcement

The Competitive Landscape

Nvidia's dominance doesn't go unchallenged. Just one day after Huang's keynote, AMD CEO Lisa Su introduced the concept of the "yottaflop"—a measure of computing power so vast it was previously theoretical. While Nvidia remains the AI gold standard, analysts suggest the market may be underestimating AMD's potential to capture significant share in the next phase of the AI revolution.

The competition keeps Nvidia investing aggressively. The rapid cadence from Hopper to Blackwell to Rubin—with each generation delivering order-of-magnitude improvements—reflects a company determined to maintain its lead through relentless innovation.

Investment Implications

For investors, CES 2026 reinforced several key themes:

  • AI infrastructure spending continues: The hyperscale buildout shows no signs of slowing, benefiting Nvidia and its partners
  • Physical AI expands the addressable market: Robotics, autonomous vehicles, and industrial applications open new revenue streams
  • Ecosystem effects matter: Companies positioned as Nvidia partners—in energy, manufacturing, and software—may see derivative benefits
  • Valuation remains debated: Bulls see years of growth ahead; bears worry about cyclical risks and competition

As the AI revolution enters its next phase, Jensen Huang has positioned Nvidia not just as a chip supplier but as the architect of a new computing paradigm—one where artificial intelligence moves from screens into the physical world around us.