NVIDIA (NVDA - Free Report) has taken another big step in the autonomous driving space by reportedly partnering with Daimler and Bosch on level 4 and level 5 robo-taxis. The trial vehicles will hit the roads of in Silicon Valley in the second half of 2019.
The plan to jointly develop self-driven taxis and release them on the road in the next five years was announced by Daimler and Bosch in April this year.
This news follows Baidu’s selection of NVIDIA’s DRIVE PX 2 AI supercomputer, for its self-driving car project known as Apollo. In 2016, NVIDIA had launched DRIVE PX 2 as well as another AI supercomputer chip designed for self-driven cars called Xavier.
It also needs to be mentioned here that such key partnerships along with other initiatives have resulted in impressive performance of NVIDIA stock. The company’s shares have gained 54.3% in the past 12 months compared to the industry’s rally of 51.2%.
NVIDIA Drive: Carmakers’ top choice
NVIDIA introduced its AI computer for autonomous cars, Drive PX Pegasus, in October last year. With the size of a license plate, the platform promises a capability of level 5 autonomy — a benchmark to determine that the particular car can go completely driverless.
In order to safely run driverless, vehicles need a platform with huge amount of computational power. The vehicles will have cameras, radar, LIDAR and ultrasonic instruments, generating immense amount of data.
The Drive Pegasus features two Tegra Xavier System-on-Chips and two next-generation discrete GPUs, making it possible for the system to deliver an outstanding 320 trillion operations per second. This is required to run a massive data backed technology.
Considering all such positives, Daimler and Bosch chose NVIDIA’s platform to support their joint venture.
Extended Partner Base, New Solutions to Drive Growth
In March this year, NVIDIA partnered with Adobe on the development of new higher-performing AI services for enhanced digital Experience. Last year, it entered key partnerships with various companies like HERE, ZENRIN, Bosch and PACCAR.
NVIDIA is currently leading the AI supercomputing market. The company had revealed earlier that its DRIVE platform is currently used by more than 370 companies. With sustained focus on developing new and more advanced AI technologies for self-driving cars, the company seems well poised to grow in the driverless vehicle technology space.
Zacks Rank & Stocks to Consider
NVIDIA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Computer and Technology sector are Intel Corporation (INTC - Free Report) , Upland Software (UPLD - Free Report) and Zendesk (ZEN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Intel, Upland Software and Zendesk is projected to be 8.4%, 20% and 28.1%, respectively.
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