Nvidia unveils new developments and focuses on self-driving technology for future growth.
From Nasdaq: 2025-01-10 10:45:00
Nvidia unveiled new developments at the CES, from personal supercomputers to self-driving trucks and AI-rendered worlds. Wall Street seemed unimpressed. The podcast also discussed PayPal’s fall from recent highs and CEO Alex Chriss’s return to the company’s roots. Nvidia’s focus on gaming, despite its data center success, was also highlighted. They also plan to release a $3,000 AI supercomputer, Digits, in May. Nvidia has announced a new computer targeted towards researchers, scientists, and students working with AI models. The machine allows users to work locally, test models on their desktop, and make changes before deploying to a data center. This makes the process more productive, cost-effective, and easier to use.
Self-driving technology is a key focus at CES. Nvidia predicts self-driving vehicles will become a multi-trillion dollar industry, with companies like Toyota and Aurora partnering to incorporate Nvidia hardware and software. Aurora’s use of LiDAR technology in trucks, combined with Nvidia’s chips and software, aims to ensure safe decision-making for autonomous vehicles.
Nvidia introduces Agentic AI, a platform for developing AI agents that can perform tasks rather than just provide information. Companies can train agents on tasks, company culture, and develop job-specific agents like research assistants or virtual lab agents. While some may worry about AI taking their jobs, properly trained agents could enhance productivity and add value to strategic goals.
Physical AI is the next step after Agentic AI, focusing on technology that understands the rules of the real world. Nvidia’s Cosmos platform generates real-world environment videos from text, images, and videos, to teach hardware about the real world. Available open-source on GitHub, developers can use Cosmos to advance Autonomous hardware, robots, and vehicles. Nvidia’s Omniverse platform integrates rendering technologies and generative physical AI into existing software, while Cosmos offers pre-built worlds for developers to improve physical AI systems. These advancements in technology aim to enhance autonomous vehicles and robots. Wall Street, however, expected more concrete revenue projections, leading to a slight stock dip post-announcement. Despite this, Nvidia’s showcase of future plans was well-received.
PayPal, beyond just Venmo, generates over $5 billion in annual free cash flow by offering unique services such as payment processing and money transfers. While not entirely unique in the payment space, PayPal faces the challenge of distinguishing itself from competitors like Apple Pay and Zelle. The company’s recent focus on core services shows promise for future growth. PayPal, a pioneer in online payments, has built a large user base over time. The core payments business facilitates online transactions, earning transaction fees. Merchant services provide tools for businesses to grow. The Braintree side caters to high-growth businesses. New CEO Alex Chris has refocused on the core business, leading to a 56% stock increase.
Chris aims to improve the entire transaction life cycle of PayPal, introducing features like express checkout and recurring payments. Venmo, a key part of PayPal’s growth, is expanding beyond peer-to-peer payments into commerce. Venmo’s role in this expansion is crucial to PayPal’s future success, serving as a key part of the company’s growth story. PayPal and Venmo have 200 million active users, with a 9% increase in transactions per account. Partnerships with Shopify, Adian, and others are helping PayPal expand its user base. The Honey acquisition has faced criticism, but it won’t be fatal for the company. PayPal aims for 15% annualized returns in the next five years by growing revenue and reducing expenses.
Competition for PayPal includes Apple Pay, Zelle, and credit card companies like Visa and Mastercard. PayPal users can fund transactions through their accounts or linked cards. By leveraging partnerships and creative strategies, PayPal sees credit card companies as both competitors and partners in the payment processing industry. Expectations are for a 15% annualized return over the next five years through revenue growth and expense reduction. Mary Long from Motley Fool Money discusses potential stock growth, predicting a 15% annualized return for the next five years. She advises listeners to not solely base investment decisions on the show’s content. Bank of America is an advertising partner. Various stocks are mentioned, with Motley Fool having positions in and recommending several companies. The program will be back on Friday.
Read more at Nasdaq: The Future According to Nvidia’s Jensen Huang