Key Takeaways:
- Nvidia had a record-setting year in 2025, becoming the world’s most valuable company due to the AI boom.
- The company is positioning itself for another successful year, with a focus on self-driving cars, robots, and other intelligent machines.
- Nvidia has invested in several AI companies, including OpenAI, Intel, and CoreWeave, and has partnered with major brands such as Mercedes-Benz and Siemens.
- The company’s chips are in high demand, and it has secured $500 billion in orders for its AI chips through 2026.
- Despite concerns about an AI bubble, analysts predict that Nvidia will continue to dominate the market for high-end AI chips and develop new ways to bring AI into more products.
Introduction to Nvidia’s Success
Nvidia, the Santa Clara-based chipmaker, had a remarkable year in 2025, becoming the world’s most valuable company as the frenzy around artificial intelligence propelled its rise to the top. According to Jensen Huang, Nvidia’s chief executive and co-founder, "The race is on for AI. Everybody’s trying to get to the next level. Everybody’s trying to get to the next frontier." This statement highlights the company’s ambitious vision for the future, which includes self-driving cars, robots, and other intelligent machines that interact with people in the physical world.
Nvidia’s History and Rise to Prominence
Nvidia was co-founded by Huang in 1993, and it rose to prominence by focusing on specialized computer chips used for gaming, cryptocurrency mining, AI model training, and robotics. The company now employs over 36,000 people across 38 countries and has become a keystone in the AI boom. As Huang noted, "We imagine that someday a billion cars on a road will all be autonomous." This vision is becoming a reality, with Nvidia’s autonomous vehicle software being used by major brands such as Mercedes-Benz.
Nvidia’s Partnerships and Investments
Nvidia has struck several major partnerships, including with OpenAI, announcing a plan to invest up to $100 billion in the San Francisco startup. The company has also partnered with Mercedes-Benz, which uses Nvidia’s autonomous vehicle software, and has teamed up with Universal Music Group to "pioneer responsible AI for music discovery, creation, and engagement." Additionally, Nvidia has invested in companies such as Intel and CoreWeave, and has backed Elon Musk’s xAI. As Wedbush Securities analysts noted, "The start of trillions of AI spending all began with the Godfather of AI Jensen and Nvidia as they are the only game in town with their chips, the new gold and oil."
Nvidia’s Future Prospects
Nvidia’s latest moves are expected to help the company grow as it tries to spur more demand for its products. Robotics and autonomous technology represent "an incremental market opportunity" for Nvidia, and the company could eventually reach a $6 trillion market cap. As Gil Luria, head of technology research at D.A. Davidson, said, "Nvidia is going to do just fine. And it is really an indication that we are using AI tools a lot." However, the company may face hurdles in convincing people and regulators to become more comfortable with autonomous vehicles.
Challenges and Uncertainties
Despite being a major player in the AI race, uncertainty lingers about Nvidia’s market in China, which could be worth $50 billion annually. Tariffs and trade restrictions also impact the chipmaking giant. The company has lobbied aggressively for the U.S. government to ease export restrictions on AI chips, and President Trump has expressed concerns that China could lead in the AI race and pose a threat to U.S. national security. As Huang said, "Customer demand for these chips in China is very high," but there have been questions about whether sales will go through due to the Chinese government’s request for some Chinese tech companies to halt H200 chip orders.
Conclusion
In conclusion, Nvidia’s record-setting year in 2025 has positioned the company for another successful year, with a focus on self-driving cars, robots, and other intelligent machines. The company’s investments and partnerships, including with OpenAI and Mercedes-Benz, are expected to drive growth and innovation in the AI industry. While there are challenges and uncertainties, including the potential for an AI bubble and trade restrictions, analysts predict that Nvidia will continue to dominate the market for high-end AI chips and develop new ways to bring AI into more products. As Huang said, "The race is on for AI," and Nvidia is well-positioned to lead the way.
https://www.latimes.com/business/story/2026-01-09/can-nvidia-repeat-its-record-breaking-year
