Nvidia’s Automotive Revenues Surge, Driven By Autonomous Vehicles – Forbes

Posted: Thursday, November 24, 2016

S Leading GPU manufacturer, Nvidia reported its Q3’17 results on November 10th. In Q3, the company’s automotive revenues increased at 61% on a year-over-year basis to $127 million. The key reason driving this growth is the fact that the company is witnessing strong demand for its DRIVE PX 2 platform from autonomous car makers. In this analysis, we discuss key factors driving this demand.

Nvidia’s Offering An Essential Part In The Self-Driving Car Supply Chain

Self-Driving vehicles offer a huge opportunity for a number of companies to step in and become integral parts of the entire self-driving car supply chain or to establish themselves as key players in the market. Nvidia is successfully capitalizing on this opportunity by integrating its deep learning expertise in processing the data and functionality to precisely help locate the vehicle on an HD map and plan a safe path are the key functionalities essential to self-driving vehicles.

It should be noted that, for a safe experience in a self-driving vehicle, it must be capable of knowing exactly where it is, recognizing objects around it, and continuously calculating an optimal path to the destination. Nvidia has been working on building its automotive computing platform for over a decade and is in a strong position to leverage this growth. NVIDIA continues to believe that the solution to self-driving cars is through computer vision realized by neural networks, with more compute power being necessary to get better performance with greater accuracy.

The key feature behind the growing adoption of the DRIVE PX 2 platform is that it is capable of understanding in real time what’s happening around the vehicle, by constantly processing the data coming in from the vehicle cameras and sensors to produce complex images of objects around the vehicle.

Integration of Pascal Architecture In Tegra SoC

In March 2016, Nvidia introduced its Pascal GPU architecture (built on 16 nm process technology), which has massive performance and power efficiency improvement over its predecessor. The integration of the Pascal architecture with Tegra SoC designs is likely helping the company to enable its leadership in its DRIVE PX2 platforms.

NOTE: We are in the process of updating our valuation for Nvidia.

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