NVIDIA Corporation (NASDAQ:NVDA) recently announced a partnership with Volkswagen AG (OTCMKTS:VLKAY), Volvo and Autoliv, Inc. (NYSE:ALV) to develop next-generation software systems for self-driving cars
Nvidia, Volkswagen and Autoliv will work together along with Zenuity, a newly formed automotive software development joint venture owned by Volvo and Autoliv, equally. These companies will use NVDA artificial intelligence car computing technology. This move is expected to take artificial intelligence (AI) and self-driving cars technologies to new highs.
The new software system will help in utilizing artificial intelligence to recognize objects around vehicles, predict danger and depict safety roadmap. This venture will see the respected automotive safety companies collaborate with a leading artificial intelligence company.
The two companies have now decided to put advanced AI cars on the road by 2021.Per the deal, Autoliv, Volvo, and Zenuity will use NVIDIA’s AI car computing platform as the foundation for their advanced software development. The three companies share the same vision of safe, autonomous driving. This cooperation will advance autonomous driving product and solution offerings to the market.
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 prospects in the space. With its sustained focus on developing new and more advanced technologies for self-diving cars, we believe that the company is well poised to capitalize on this opportunity. Estimates provided by various research firms further encourage us about NVIDIA’s growth prospects in the space.
Share Price
NVIDIA remains one of the best performers in the semiconductor space. The stock has gained 222.8% in the last one year, outperforming the Zacks categorized Semiconductor-General industry’s gain of just about 33.99%.
Last Words
Widely known for its video gaming chips, NVIDIA has pioneered the art and science of visual computing. With a singular focus on this field, the company offers specialized platforms for the gaming, automotive, data center and professional visualization markets. Its products, services and softwares deliver amazing experience in virtual reality, artificial intelligence and autonomous cars.
NVIDIA continues to be the world’s biggest graphic processing hardware provider for PCs since the past several decades. The company’s efforts toward autonomous vehicle and the AI segment shows that it intends to be the largest player in the self-driving and machine-learning arena too. Furthermore, by expanding its business avenues, the company will be able to reduce its dependency on the PC industry, which is currently declining.
The recent partnership displays NVIDIA’s determined focus on staying ahead of its rivals, Intel Corporation INTC and Qualcomm Inc., in the driverless car technology space.
Currently, NVIDIA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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