Volkswagen AG and Uber Technologies Inc. will utilize NVIDIA Corporation’s (NVDA - Free Report) artificial intelligence (AI) technology for self-driving vehicles, per a Bloomberg report. According to the news, Volkswagen will deploy Nvidia’s technology to design co-pilot system. Again, ride-sharing company Uber will use Nvidia’s processors and software of for its upcoming fleet of self-driving vehicles.
Importantly, competition among chip making companies has intensified in the growing self-driving car market. Leading automakers across the globe are tying up with different companies to find out the best way to remove the need for drivers.
The co-piloting system will offer convenience and include features using sensors inside and outside the vehicle. The system will get better with AI capabilities. Some of the important features may include the facility to recognize a driver who is a drowsy or distracted and keep the car running smoothly at the right speed.
The company has outperformed the industry it belongs to in the last three months. Its shares have gained 24.7% compared with the industry’s growth of 12.7 %.
Nvidia currently sports a Zacks Rank #1 (Strong Buy).Volkswagen currently has a Zacks Rank #2 (Buy). The long-term growth rates for Volkswagen and Nvidia currently stand at 12.9% and 10.3%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
A couple of other top-ranked automobile stocks in the same space are Allison Transmission Holdings, Inc. (ALSN - Free Report) and Lear Corporation (LEA - Free Report) , each carrying a Zacks Rank #2.
Allison Transmission has a long-term growth rate of 10%. The company’s shares have gained 35.6% in the past 12 months.
Lear Corporation has a long-term growth rate of 7.1%. The company’s shares have gained 40.7% in the past 12 months.
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