88% of Nvidia’s Revenue Is at Risk… Here’s How Jensen Plans to Fix It (Watch Out Tesla)

Nvidia has gotten off to a pretty rough start, unlike Trump and Melania's memecoins (which are creating billions in wealth out of thin air). After crushing it with a 171% surge in 2024, Nvidia’s stock is now barely making it past breakeven, crawling up just 2.6% ytd. For context, even the S&P 500 has managed a respectable 2% climb. This has led too many Nvidia investors to go onto reddit and ask the question? “Should I sell all my Nvidia shares and buy Palantir?” (Probably not).

If you’re wondering what happened to Nvidia’s never ending AI boom? Wall Street says it’s not dead… it’s just going through a rough stretch. Morningstar analyst Brian Colello points out that big spenders like Microsoft, Alphabet, and Amazon are starting to scale back their AI chip splurges. These companies aren’t pulling the plug, but they’re definitely hitting pause on blowing billions on GPUs. And since AI accounts for 88% of Nvidia’s revenue, it’s kinda obvious why they’re slowing down.

The average analyst target for Nvidia still sits at $176, which is about 28% higher than its current price of $137.71. Optimistic? Sure. But getting another 100%+ surge this year would require an AI spending frenzy we’re just not seeing right now. Even Colello admits: “There’s always been talk of an AI bubble…but at some point, the cloud companies have an incentive to optimize their spending. To get another 100%-plus surge, we’d need a massive increase in AI spending.” In other words: Don’t expect another historic year unless somehow we get hit with another worldwide pandemic and Jerome makes the money printer go BRRRR (and we all get stimulus checks).

While Nvidia’s AI train is slowing, Jensen Huang is already pivoting to the next hot idea: autonomous vehicles. Nvidia’s Drive platform powers self-driving technology for automotive companies like Mercedes-Benz, Toyota, Volvo, and Hyundai. The heart of this platform is Nvidia’s Thor chip, which processes the mountains of data collected by a vehicle’s sensors (everything from radar to cameras) to make real-time driving decisions. The Thor chip is a beast, offering up to 2,000 teraflops of performance (yes, 2,000). That’s enough computing power to handle everything from parking assist to full-blown autonomous driving. And of course, in true Jensen fashion Nvidia isn’t gonna just sell the chips. They’re also providing the infrastructure carmakers need to train and continuously improve their self-driving systems.

Jensen’s belief is that autonomous vehicles could represent a multi trillion-dollar market. Cathie Wood’s ARK Invest estimates autonomous ride-hailing alone could generate $14 trillion in enterprise value by 2027, with a huge chunk of that going to platform providers like Nvidia. (Of course, that’s crazy Cathie, so just need to put a disclaimer here). Then there’s Project GROOT, Nvidia’s humanoid robot initiative (yes, they actually named it after the Marvel character). GROOT is designed to go head-to-head with Tesla’s Optimus robot, which Elon Musk claims will “change the economy” (if it’s ever released of course).

Unlike Optimus, Nvidia’s robot won’t just walk and wave… it’s being built to leverage AI for tasks like warehouse logistics, industrial automation, and even elder care. It’s powered by Nvidia’s Jetson Thor SoC (System on a Chip), which was unveiled earlier this year as a game-changer for physical AI applications. And while GROOT is still in development, Huang has made it clear he’s betting big on robotics. Last week, Huang hosted a “trillion-dollar banquet” in Taiwan, where he dined with TSMC boss C.C. Wei and other Nvidia partners. The duo announced a deeper partnership to tackle autonomous vehicles and robotics, with TSMC providing the cutting-edge chips Nvidia needs to execute its vision. Wei even gushed during the event: “It’s my honor to supply the chips to you…thank you for bringing business to Taiwan.” (Somewhere, Taiwan’s GDP smiled.)

Nvidia’s rough start to 2025 isn’t the catastrophe some Reddit threads might make it out to be. Sure, AI spending is slowing, and the stock’s meteoric rise has hit turbulence, but Jensen Huang is playing the long game. With multi trillion-dollar opportunities in autonomous vehicles and robotics. And if Huang’s banquet turns out to be more than just an expensive dinner party, this could be the next feast Nvidia investors have been waiting for. Just maybe don’t sell your shares for Palantir just yet.

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Stock.News has positions in Tesla, Microsoft, Alphabet, and Amazon.