Summary
NVIDIA will benefit from a growth of driverless cars number through its self-driving platform.
A great marketing campaign will allow NVIDIA to increase its number of clients in the automotive industry.
Gaming and datacenter businesses of NVIDIA have excellent prospects for a profitability growth.
I believe that NVIDIA's self-driving platform, Drive PX2, creates a tremendous potential for NVIDIA's earnings growth.
The Drive PX 2 has 12 CPU cores (2 Parker processors), offers 8 teraflops of floating-point performance, has two Pascal GPUs and draws 250 watts. Thereby, Drive PX2 is a supercomputer, which is only processing data. It has one competitor, called Bluebox, which consists of two chips — one for processing visuals and a beefier one for making decisions, making it a complete system for both testing and developing autonomous cars up to Level 4 autonomy. However, Drive PX2 is more powerful than Bluebox’s chip for processing visuals. NVIDIA uses two …show more content…
In addition, NVDA has notified that more than 80 automobile manufacturers, suppliers, and research centers also use the platform that indicates a true excitement around it. Some automakers like Volvo and Baidu are already demonstrating that there are no standard solutions for so various amount of carmakers with different cars, seeking for more efficient software than NXP’s Bluebox proposes. Thus, I believe the best performance of NVIDIA’s platform and its wide popularity among major automakers due to ease of use will contribute to a further increase in the platform’s sales.
Despite a technological success of Drive PX2, NVIDIA's management pays due attention to marketing that will strengthen the popularity and increase a