Most investors think they understand where artificial intelligence is headed.
They picture faster chips. Bigger data centers. Smarter software living on screens and servers.
But at the Consumer Electronics Show (CES) in Las Vegas this week, we got a different look at where things are really going.
You see, AI is quietly reaching a turning point. And we may look back on 2026 as the year when AI crosses over into the physical realm.
In fact, CES has a long history of marking inflection points like this.
Years ago, it was the compact disc (CD).
Then the VCR.
Later, the original Xbox.
I could go on. The point is, at the time, they looked like new tech gadgets. But in reality, they marked pivotal moments – moments when technology moved into everyday life and reshaped entire industries.
That’s what happened again this year.
NVIDIA Corporation (NVDA) CEO Jensen Huang put it plainly when he said, “The ChatGPT moment for physical AI is here.”
So, in today’s Market 360, I’ll tell you all about some key highlights from CES, what they mean for this next phase of the AI Revolution and how it signals a change in tech leadership.
Make no mistake, this is a really big deal, folks. A lot of people could lose money by ignoring market shifts like this, but it’s also a great opportunity to profit. So, to wrap things up, I’ll explain how you can avoid the “hidden crash” that I see coming – and what to do to profit.
The Future Has Arrived
First, one of the biggest announcements at CES came from Huang when he introduced its next-generation AI chip, Vera Rubin. It’s made up of six chips, combining a Vera central processing unit (CPU) and two Rubin GPUs. These graphics processing units are designed to deliver five times greater performance and 10 times lower cost per query than NVIDIA’s current Blackwell chips.
In other words, it will drastically lower the cost of utilizing AI – which means it will spread even faster.
Huang said that Rubin is in full production and is expected to be delivered to customers later this year.
The next big announcement focused on robotics – more specifically, autonomous vehicles (AVs).
Huang introduced Alpamayo, a portfolio of AI models designed for vehicles with “Level 4 autonomy,” which means no driver is needed, but only in approved areas.
With Alpamayo, vehicles will be able to think and make human-like judgments in complex road situations. For example, if a traffic light goes out at a busy intersection, it’ll tell you the action it’s going to take and the reason why it’s doing it.
Huang explained that he is talking to robotaxi operators in the hopes of having them use NVIDIA’s chips and AV software to power their AVs as soon as 2027.
According to Huang, robotics is now NVIDIA’s second most important growth category after AI, and many of its robotics applications are on the factory floor.
But they won’t stay there forever. Eventually, we’ll have these robots coming into our homes.
For example, another huge robotic debut out of CES came from Boston Dynamics, a subsidiary of Hyundai. The company’s “Atlas” humanoid robot is now fully electric (the old version was hydraulic, which made it loud and leaky). This new version is quieter, stronger and easier to manufacture at scale.
It can autonomously swap its own batteries in about three minutes, which is a game-changer for industrial deployment. It features 360-degree joints that allow it to move in ways humans simply can’t, and it can lift roughly 110 pounds with a reach of over seven feet.
Most importantly, Atlas received a big brain upgrade, giving it something close to “common sense.” So, instead of painstaking programming, you can give it a high-level task and let it figure out the details.
Now, Atlas will be deployed at the new Hyundai Motor Group facility near Savannah, Georgia, this year, with a broader rollout expected by 2028. The initial job will be “parts sequencing” – in other words, taking specific heavy electric vehicle parts from storage containers and organizing them for the assembly line.
At scale, these robots will assemble entire cars.
Do you see where I’m going with this?
Let me explain.
Why They Matter
Toward the end of 2025, some negative sentiment began to form in the financial media about the state of the AI Revolution, largely driven by naysayers and unscrupulous short sellers.
But the main thing I want you to understand is that AI isn’t slowing down – it’s accelerating. In 2026, it will begin moving off our screens into the physical world in a major way.
NVIDIA’s Rubin will make AI cheaper and more powerful. Its Alpamayo platform will broaden access to self-driving and enable problem-solving in the real world.
And as AI expands, it’ll create new demand for the infrastructure that powers it, such as data centers, cooling systems, energy and grid upgrades.
This creates a powerful feedback loop.
The more AI spreads into factories, vehicles and infrastructure, the more physical systems it requires. And the companies that build and supply those systems begin to matter far more than most investors realize.
This is where many portfolios are already misaligned.
And yes, NVIDIA is still one of the best ways to ride the AI trend. No question about it.
But when a single company – or a small handful of companies – becomes the default way everyone expresses the same belief, that creates a major risk.
Not the risk of an immediate crash.
The risk is concentration.
When leadership becomes too crowded, returns don’t usually collapse overnight. They flatten. They stall. Capital keeps flowing in, but performance quietly stops keeping up.
That’s how investors wake up years later, wondering why their biggest positions went nowhere – while other stocks quietly compounded beneath the surface.
That’s the dynamic I see setting up right now.
What’s Really Happening… And How to Stay Ahead
Now, that might sound surprising to you because if you’ve followed me for a while, you know that I’ve been touting NVIDIA for years.
Well, as I pointed out earlier this week, NVIDIA is one of the only two Magnificent Seven companies that outperformed the S&P 500 last year. Essentially, investors are relying on these big-name companies for growth and assuming that today’s leaders will stay on top.
But history tells us that growth eventually stagnates. Returns begin to stall.
That’s the setup I see right now with the rest of the Magnificent Seven. It’s what I’m calling the Hidden Crash.
Again, I’m not talking about a major sell-off or anything like that. It’s when yesterday’s leaders begin to slow down, while other companies take off just beneath the surface.
I call them Edge Innovators. They’re building the infrastructure that AI depends on.
Let me be clear, this Hidden Crash has already started. And I believe that the next 60 to 90 days are the most optimal window to get in on the Edge Innovators that will reshape the next phase of the market and deliver powerful returns – while many of the household names you know (and probably own) begin to stagnate.
In my latest briefing, I’ll show you the seven warning signs I’m tracking, where institutional money is flowing to, plus the name and ticker of my No. 1 Edge Innovator pick.
Click here to watch the full briefing and get the stock pick now.
Sincerely,
Louis Navellier
Editor, Market 360
