It’s a big week.
Nvidia kicked off its annual developers meeting today (called GTC, “GPU Technology Conference”).
And tomorrow afternoon Jensen Huang will give the keynote speech, where he will educate the world on the state of the AI revolution.
Earlier this year, he said the theme of 2025 would be physical AI. This is where AI systems integrate with the physical world.
And Jensen has said in the past that physical AI will reshape $100 trillion worth of global industry.
Physical AI is about robots.
And ahead of this week’s GTC event, Nvidia’s head of research said “this is the year of humanoid robots” — the hardware capabilities are rapidly improving, so are the foundation models (the AI brain), and the costs are coming down.
Keep in mind, Jensen has equated this combination of robotics and AI (“general robotics“) to the launch of ChatGPT, which he described as the defining moment that “crystallized” how large language models would translate to a product and service.
And two months ago, he said the general robotics “moment” was “just around the corner.”
With that, we head into this event with the S&P having hit official correction territory last week (-10.6% peak to trough in the S&P futures), and the Nasdaq having retraced back to this big trendline that represents the rise from … the “ChatGPT moment.”
So, we should get some optimism on the technology revolution for markets to digest this week.
And we’ll also hear from the Fed on Wednesday.
Heading into this meeting, the interest rate market is now back in-line with the Fed rate outlook for the year (2 cuts) — pricing in a June cut and one in September. So, market expectations have trimmed rate cut expectations over the past week.
With that, anything more dovish leaning in the Fed commentary should be taken as a positive for stocks, even though it would likely come as a condition of anticipated weakness in the labor market (i.e. DOGE job government cuts). Why a positive? It would communicate to markets that they are paying attention, and ready to react.
