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NVIDIA Hits All-Time High on Strength in Autonomous Vehicles

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Shares of NVIDIA Corporation (NVDA - Free Report) yesterday crafted an all-time high of $225 as the company’s recent announcements ahead of the Consumer Electronics Show (CES) 2018 made investors more optimistic on its autonomous vehicles opportunity.

Even before the biggest tech show of the year officially commences, NVIDIA, during its Jan 7 press conference, revealed why it is poised to be the market leader and a dominant supplier of artificial intelligence (AI) chips which will power future vehicles.

During the conference, NVIDIA reported that the long list of autonomous vehicle partners for its AI technology now also include Uber Technologies Inc. and Volkswagen AG. The company’s long list of partners includes Baidu (BIDU - Free Report) , Tesla (TSLA - Free Report) and Audi.

NVIDIA knows it very well that for the successful operation of autonomous vehicles, a powerful AI supercomputing platform is required. Therefore, the company has also been making efforts to boost its AI capabilities. On this front, NVIDIA has joined forces with companies like Aurora and German auto supplier ZF Friedrichshafen AG.

NVIDIA’s Journey in Driverless-Cars Space

NVIDIA forayed into the autonomous vehicle and other automotive electronics space by launching a computer vision system at the CES 2015. It hasn’t looked back since then and has been continuously bringing new and more advanced technologies in the space.

At the beginning of 2016, NVIDIA launched DRIVE PX 2 — the world’s most powerful engine for in-vehicle AI. Later that year, in September, this graphic-chip behemoth unveiled an AI supercomputer chip designed for self-driving cars called Xavier at its GPU Technology Conference (GTC) in Amsterdam.

The company, during Sunday’s press conference, mentioned that now over 320 companies are using its DRIVE AI platform to roll out autonomous vehicles on roads. Also, the company stated that the first lot of its new Xavier processors will be delivered in the first quarter of this year.

Huge Growth Potential of the Industry

According to data available from BI intelligence, 10 million self driving cars will be on the road by 2020. Per Statista, the market for fully autonomous vehicles will grow to almost $6 billion, while partially autonomous vehicles market will reach $36 billion by 2025. According to Boston Consulting Group estimates, the autonomous car market will be worth $42 billion by 2025 and $77 billion by 2035.

These estimates encourage us about NVIDIA’s growth opportunities in the space. With its sustained focus on developing new and more advanced technologies for self-diving cars, we believe the company is well poised to capitalize on this opportunity.

Bottom Line

With continued focus on developing new and more advanced AI technologies for self-diving cars, we believe the company is well poised to become a leading provider of technology for autonomous vehicles. In this space, the company is already a market leader, outpacing other competitors, such as Intel Corp. (INTC - Free Report) and Advanced Micro Devices (AMD - Free Report) , in terms of growth.

NVIDIA remains one of the best performers in the semiconductor space. Notably, the stock has more than doubled in the last one year, significantly outperforming its industry’s gain of 49.9%.



NVIDIA sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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