Key Highlights
- Nvidia has entered a memorandum of understanding with LG Group to create a humanoid robot utilizing its Isaac GR00T model and Jetson Thor platform.
- LG expects to introduce the bipedal humanoid robot during the first quarter of 2027.
- NVDA climbed 0.4% in premarket trading to $2,261.13, marking an 11% advance over the last month.
- Latest quarterly revenue reached $81.61 billion, representing an 85.2% year-over-year increase and surpassing projections.
- Wall Street analysts maintain an average “Buy” recommendation with a price target of $305.94; the company also operates an active $80 billion buyback initiative.
Nvidia shares climbed 0.4% during premarket hours to $2,261.13 on Friday, continuing a positive trajectory that has delivered an 11% gain over the previous month. Fueling this recent momentum is a newly announced collaboration with South Korea’s LG Group focused on humanoid robotics development.
The partnership involves a signed memorandum of understanding between both organizations to jointly create an advanced bipedal humanoid robot. LG has outlined plans to present this robot publicly during the first quarter of 2027. The machine will be powered by Nvidia’s Isaac GR00T foundation model alongside the Jetson Thor computing platform.
The collaboration extends beyond humanoid development, as LG and Nvidia are simultaneously exploring wheel-based robotic systems and advanced computing platforms designed for automotive applications.
“The defining opportunity of physical AI is to give every machine the ability to understand the real world, reason and act safely alongside people,” stated CEO Jensen Huang.
This announcement arrives after Nvidia revealed a similar partnership with Chinese startup Unitree aimed at advancing humanoid robot technology. Huang has characterized humanoid robotics as representing a “multitrillion-dollar economic opportunity.”
Analyst Outlook Remains Positive
The robotics initiatives build upon Nvidia’s already impressive financial performance. During its latest quarterly report, the company delivered revenue of $81.61 billion, reflecting an 85.2% year-over-year surge that exceeded the consensus forecast of $78.42 billion. Earnings per share registered at $1.87, surpassing analyst expectations of $1.76.
The company’s board has greenlit an $80 billion share repurchase program. Additionally, Nvidia increased its quarterly dividend to $0.25 per share, a substantial rise from the previous $0.01.
Wall Street sentiment continues to skew overwhelmingly positive. Among analysts, three assign NVDA a Strong Buy rating, 48 recommend a Buy, and only two maintain a Hold position. The consensus price target stands at $305.94.
JPMorgan elevated its price objective to $280 while maintaining an Overweight rating. Citic Securities boosted its target to $315. Robert W. Baird established a $500 target accompanied by an Outperform rating.
Potential Headwinds
Despite broad optimism, some concerns persist. Notable investor Michael Burry has questioned potential circular financing arrangements, suggesting that Nvidia’s investment activities, customer funding mechanisms, and GPU revenue streams might be interconnected in ways that introduce vulnerability.
CEO Huang has also acknowledged geopolitical challenges, cautioning that China redirecting AI computing workloads toward Huawei hardware could potentially undermine American semiconductor leadership.
Institutional ownership of NVDA currently stands at 65.27%. Hobart Private Capital reduced its stake by 6.7% during Q2, divesting 2,729 shares while maintaining 38,304 shares valued at approximately $7.7 million.
NVDA began trading Friday at $225.30, operating within a 12-month range between $164.07 and $236.54. The stock’s 50-day moving average currently sits at $205.74.
Bank of America has positioned Nvidia as a primary beneficiary of the growing AI semiconductor sector, while Wells Fargo reaffirmed its Overweight stance in anticipation of upcoming earnings results.
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