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Nvidia Driverless Car Tech - $NVDA

The driverless car tech industry is set to boom with commercial introduction soon, and Nvidia (NVDA) is already profiting.

The stock market sometimes has stocks that could take off in a big way as certain industries begin to gain prominence. And, there’s one industry that’s set to transform transportation in the near future.

Public roads in the United States could soon see driverless cars in action. The government could be legalizing autonomous vehicles before the end of the next decade or even sooner than that. It’s the future, with IHS Automotive predicting 21 million self-driving cars being sold in 2035 in the United States alone and 76 million being sold globally all through 2035. Obviously, this makes driverless car stocks really valuable for investors because of the immense growth opportunities out there. This is a unique segment since it is witnessing massive investment from auto companies and tech companies alike.

Why Nvidia Is in an Enviable Position
Experts believe Nvidia (NVDA) can significantly profit from the driverless revolution. Let’s find out why:

image og Nvidia, NVDA logoNvidia is a well known company in tech circles, but the graphics chip manufacturer is pivotal to the car market. It has already been supplying processors to car companies for powering their in-car infotainment systems and instruments. Now it has plunged into the artificial intelligence (AI)-powered self driving car tech. It also began profiting from it the past year. Contributing to this is the company’s AI platform, Drive PX 2, which has been used by over 225 car and truck manufacturers as well as other start-ups and research organizations.

Nvidia announced in May that Toyota would be using the Drive PX 2 platform for powering its driverless technology that will be introduced in the market. That’s a big boost for Nvidia since Toyota is the world’s no.1 auto manufacturer, offering the potential for significant growth for the chip and AI platform manufacturer. Tesla Motors ($TSLA – which is another great autonomous car stock) has begun using the Drive PX 2 platform for powering the Autopilot feature on its Model X and Model S. The soon-to-be-released Model 3, the more affordable Tesla car, will also use this platform. Mercedes-Benz (Daimler), Volvo and Audi (Volkswagen group) have also partnered with $NVDA for driverless tech.

Drive PX 2 Key to the Future of Transportation
The Drive PX 2 platform is expected to provide not only cars and trucks but also shuttles with Level 3 autonomy by the end of 2017 and Level 4 autonomy, which is just a level away from total autonomy, by the end of 2018.

Coming to the numbers, revenue from Nvidia’s auto platform rose 24% year over year, hitting $140 million in Q1 of fiscal 2018. Overall, this occupies only a tiny part of the chip maker’s revenue, 7.2% of the company’s $1.94 billion, most of which comes from the gaming industry. But with the amazing growth of the driverless car market, the revenue from the auto industry is sure to increase for Nvidia.

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