Nvidia is the leading player in the AI chip market, and this position has resulted in billions of dollars in revenue.
Nvidia chief Jensen Huang recently spoke at CES.
Nvidia (NASDAQ: NVDA) has been an artificial intelligence (AI) champion since the start of the AI boom. The company got into the space early, focusing the design of its chips to suit this technology, and that’s resulted in a No. 1 position in the market. As a result, Nvidia’s revenue has soared, and the stock price has followed as investors rushed to get in on this success story. Nvidia shares have advanced 1,100% over the past three years.
Though this picture is bright, investors still look expectantly to Nvidia for signs of what’s next — and what may keep the revenue momentum going. After all, the company isn’t alone in this dynamic space. It faces mounting competition from rivals such as Broadcom and Advanced Micro Devices. And it even faces the possibility that customers such as Alphabet will rely more heavily on their in-house designed chips and buy fewer Nvidia products down the road.
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Just this week, Nvidia chief Jensen Huang spoke at the consumer electronics event known as CES, a forum for product announcements and innovation updates, and he offered a clear picture of what’s ahead for the company. In fact, Huang delivered brilliant news to Nvidia investors for 2026.
Image source: Getty Images.
First, though, it’s important to take a quick look at the Nvidia story so far and a promise the company has made to customers and investors. As mentioned, Nvidia was first to market with its graphics processing units (GPUs) for AI, and this helped the company establish leadership. These GPUs drive the critical steps needed to get the AI show on the road, from the training of models to putting them to work.
Nvidia didn’t stop there and instead added a wide selection of related products and services to its repertoire — and that has made it a source that customers can turn to for any of their AI needs. The company also has been proactive, designing platforms in areas such as robotics to drive the AI developments of the future.
At the same time, Nvidia made a promise several quarters ago to those depending on it for technology and growth. The company pledged to update its GPUs on an annual basis, and it’s followed through on that with the launch of the Blackwell architecture in late 2024 and then the Blackwell Ultra update last year. Both products met with enormous demand, generating billions of dollars for Nvidia.
And this brings me to Huang’s announcement at CES. It’s as simple as this: The company’s Rubin platform is in full production. That puts this next update on track for release this year, once again fulfilling Nvidia’s promise. Rubin features five innovations, including the latest NVLink communications link and the Vera central processing unit (CPU). (CPUs are the main chips that power computers.)
But this isn’t the only chip involved. In fact, Rubin includes six chips all designed together, in a process called “extreme codesign” — and this has resulted in tremendous gains in efficiency. This integration of chips allows Rubin to offer benefits such as reducing inference token costs by as much as 10 times, and its switch systems help Rubin to offer major improvements in power efficiency and uptime.
So, this platform sounds solid — but why is this announcement such fantastic news right now? There are three reasons. First, it’s yet another example of Nvidia keeping its word and demonstrating that it can innovate and launch a major product on an annual basis. Second, innovations are key because they are what should keep Nvidia in its leadership position. It will be very difficult for a rival to beat Nvidia when new launches happen once a year.
Finally, the timing of this launch may be perfect as demand charges on for training and inference. Huang even said during CES that this demand was “going through the roof.” Tech giants that want to succeed in the AI race are eager to get in on the latest tools, so Rubin could be another significant revenue driver for Nvidia — and this wave of growth may begin in 2026.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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