With chip stock Nvidia (NASDAQ:NVDA) now running on all cylinders in chip production, particularly chip production for artificial intelligence (AI), it would be easy to wonder what’s next. We may have that answer now, as Nvidia recently joined a coalition of investors who are backing startup Figure AI. Nvidia gained nearly 2% in Thursday afternoon’s trading as a result.
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Nvidia joined the likes of Microsoft (NASDAQ:MSFT), OpenAI, and Jeff Bezos in a funding round for Figure AI. The startup raised $675 million and is now valued at $2.6 billion. So, what is Figure AI planning to do with all that cash? Develop their line of humanoid robots, known currently as the Figure 01. The Figure 01 looks and moves like a human and will ultimately take jobs from human beings. In this case, it’s the most dangerous of jobs that the Figure 01 looks to replace, as well as some of the most difficult to fill, like shipping, warehousing, and manufacturing.
Massive Unemployment Ahead?
The Figure 01 is not intended for military use, Figure AI reps noted, which is only a small comfort. After all, plans can easily change in the future. It’s also an unpleasant note for humans who one day want to be employed. Automation systems have already cost 1.7 million jobs since 2000, and with AI itself rising up to take on many white-collar jobs, it’s starting to look like a technological advance that produces a net loss of jobs.
Is Nvidia a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 38 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 239.1% rally in its share price over the past year, the average NVDA price target of $886.52 per share implies 12.36% upside potential.
