NVIDIA Corporation (NVDA - Free Report) is pulling out all the stops in its initiatives to empower AI technology for building autonomous vehicles.
At GTC China, the company introduced a highly advanced software-defined platform, NVIDIA DRIVE AGX Orin, for autonomous vehicles and robots.
Reportedly, the new system-on-a-chip (SoC) Orin, which packs 17 billion transistors, delivers seven times the performance of the company’s previous generation Xavier SoC. The platform is capable of handling numerous applications and deep neural networks that run autonomous vehicles and robots while achieving systematic safety standards, such as ISO 26262 ASIL-D.
Orin will be available in a range of configurations based on a single architecture, aiming auto manufacturers’ 2022 production calendar.
Further, NVIDIA announced that the Chinese mobile transportation company DiDi Chuxing Technology Co. will leverage its GPUs and AI technology to develop autonomous driving and cloud computing solutions.
DiDi will use DRIVE AGX Orin platform to perform inference on Level 4 autonomous driving vehicles. NVIDIA’s latest GPUs will also be used in DiDi’s data centers to train its machine learning algorithms.
In order to boost the platform adoption, NVIDIA is providing the transportation industry with free access to its collection of DRIVE deep neural networks for driverless vehicle development.
What it Holds for NVIDIA
Autonomous vehicles are set to revolutionize the concept of transport while contributing significantly to the global economy.
NVIDIA’s steady focus on developing more updated AI technologies for self-directed cars is making it well poised to become a leading provider of technology for autonomous vehicles. The company is already helming the market in this space, outclassing other competitors, such as Intel Corp. (INTC - Free Report) and Advanced Micro Devices (AMD - Free Report) in terms of growth.
Per a McKinsey research, autonomous vehicles are expected to contribute to 66% of the passenger-kilometers traveled in 2040 while generating $1.1 trillion in mobility services revenues and $0.9 trillion in sales.
Increasing popularity of mobility as a service (MaaS) solutions and accelerated deployment of 5G are anticipated to be tailwinds. According to Kenneth Research data, self-driving car market is expected to hit $173.15 billion by 2023 at a CAGR of 36.2%.
Further, going by a Grand View Research report, autonomous cars and trucks market is projected to reach 4,223 thousand units by 2030 at a CAGR of 63.1%.
These estimates encourage us about NVIDIA’s growth prospects in the domain. With its sustained focus on developing new and more advanced technologies, we believe, the company is well-poised to capitalize on this opportunity.
Zacks Rank & Another Key Pick
NVIDIA currently has a Zacks Rank #2 (Buy). Another top-ranked stock in the broader technology sector is Keysight Technologies Inc. (KEYS - Free Report) , flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Keysight is currently estimated at 9.1%.
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