NVIDIA Corporation's (NVDA - Free Report) latest collaboration with Volvo to develop a scalable AI-based autonomous driving system is expected to boost presence of the former in the self-driving vehicle market.
The companies will jointly develop end-to-end computing in autonomous vehicles using the NVIDIA’s Drive AGX Pegasus computing board.
The offering will include accelerated computing technology in the datacenter for training of deep neural networks; large-scale simulation for hardware-in-the-loop testing and validation of autonomous vehicle systems; and rolling out the NVIDIA DRIVE platform in the vehicle.
The partnership will not only help NVIDIA to expand customer base, but will help it tap the niche market for autonomous trucks. Per the latest report by Visiongain, the global Autonomous Trucks market is expected to reach $4.19 billion in 2019.
Moreover, NVIDIA’s latest initiative will increase competition for tech giants, namely Intel (INTC - Free Report) , Qualcomm (QCOM - Free Report) and DXC Technology (DXC - Free Report) in the self-driving vehicle space.
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NVIDIA’s Auto Partnerships Hold the Key
NVIDIA is working with more than 320 automakers, including Audi and Daimler’s Mercedes to develop and deploy AI systems for self-driving vehicles.
Uber has been using NVIDIA’s AI computing technology in its fleet of self-driving vehicles for more than a year now. Meanwhile, Volkswagen has been working on creating new cockpit experiences and improving safety for its future vehicles by using NVIDIA’s DRIVE IX AI platform.
Aurora is building a Level 4 and 5 self-driving hardware platform by using its NVIDIA DRIVE Xavier processor.
Further, the company has partnered with Baidu (BIDU - Free Report) and German auto supplier ZF Friedrichshafen to build a “production-ready AI autonomous vehicle platform” specially designed for the Chinese market.
Additionally, Toyota has extended its partnership with NVIDIA to ramp up its autonomous vehicle development program.
Intel, Qualcomm & DXC: Major Competitors
Intel, thanks to its Mobileye acquisition, has become a close competitor to NVIDIA in the self-driving space.
The low power consumption of Mobileye chips and ability to create maps for self-driving systems via its Road Experience Management platform has helped Intel to gain footprint in the market. Moreover, recently, Intel agreed to supply EyeQ5 chip in 8 million driverless vehicles for a leading European automaker.
Qualcomm’s foray into the autonomous vehicle market is also a growing cause of concern for NVIDIA and Intel. In January this year, the company’s third-generation Snapdragon Automotive Cockpit Platform — an AI platform for building in-car experiences — was made available to the automotive industry.
Moreover, vehicle partners, Audi, Ford and Ducati, has demonstrated how Qualcomm's 9150 C-V2X chipset can be used between vehicles for tasks like negotiating the right of way.
Another company, which is vying for a position in the self-driving vehicle space is DXC Technology. The company recently signed a deal to acquire digital innovator Luxoft, which already has partners like Daimler. Daimler’s automotive platforms and IP include autonomous driving platforms, human machine interface, tool chain, digital cockpit, user experience, and telematics and IoT for connected vehicles.
The combination of Luxoft’s digital engineering capabilities and DXC’s technological expertise is expected to strengthen the latter’s presence in the automotive industry.
NVIDIA currently has the competitive edge in the self-driving space due to its expansive automotive partnerships and its ability to offer end-to-end solutions.
NVIDIA, Intel and Qualcomm currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DXC Technology has a Zacks Rank #5 (Strong Sell).
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