This Is Nvidia's Next Trillion-Dollar Opportunity, According to Jensen Huang -- and It's Something You Might be Overlooking

Core Insights - Nvidia generated over $44 billion in revenue in Q1 of fiscal 2026, with $39.1 billion from its data center business, highlighting its dominance in the GPU market for AI developers [1] - CEO Jensen Huang predicts AI data center spending will exceed $1 trillion annually by 2028 and sees autonomous vehicles as another trillion-dollar opportunity [2][7] - The automotive segment, currently contributing only 1.3% of total revenue, is expected to grow significantly, with forecasts suggesting it could reach $5 billion in fiscal 2026, a 194% increase from $1.7 billion in fiscal 2025 [9][10] Industry Trends - The development of autonomous vehicles requires advanced AI software and hardware, with only a few companies successfully navigating this complex landscape [4] - Major players like Waymo and Tesla are leading the charge in autonomous ride-hailing, while many traditional car manufacturers lack the necessary expertise and resources [5] - Nvidia's Drive platform, which includes the powerful Thor chip, is gaining traction among top automotive brands, indicating a shift towards Nvidia's solutions in the self-driving market [6] Future Projections - Nvidia's automotive revenue could triple, but it will still represent a small fraction of overall revenue, with the data center segment remaining the primary driver of growth [9][13] - The company is also seeing increased investment from car manufacturers in its DGX data center systems and the Cosmos multimodal foundation model, which enhances self-driving AI capabilities [11][12] - Nvidia stock is currently trading at a P/E ratio of 46.4, which is a 23% discount to its 10-year average, suggesting potential for growth as the autonomous driving market develops [14][16]