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Growth Increased in NVIDIA’s Automotive Business

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NVIDIA’s automotive revenues

NVIDIA (NVDA) is exploring different vertical industries where AI can make a difference. One of the biggest industries is automotive where over 370 companies and research institutions are using NVIDIA’s automotive AI platform for their AV (autonomous vehicle) project.

NVIDIA’s automotive sales largely come from infotainment systems. The segment’s growth has been slower since mid-fiscal 2017 when the company shifted its focus to AV. The segment’s growth will likely increase when the company’s AV solutions start commercial production.

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In the second fiscal quarter of 2019, NVIDIA’s automotive revenues rose 13% YoY (year-over-year) and 11% sequentially to $161 million due to its AV engagements worldwide and the volume production of its next-generation smart cockpit infotainment solutions with AI capabilities. The segment reported double-digit sequential growth for the first time in two years.

NVIDIA’s automotive revenues depend on its progress in the AV space.

NVIDIA’s progress in autonomous vehicle

In July, NVIDIA secured an order to supply DRIVE Pegasus AI chips for Daimler and Bosch’s robot taxi project, which will likely begin testing in early 2019. The taxi service will start in select areas by the second half of 2019.

During the second fiscal quarter of 2019, NVIDIA started shipping development systems for the DRIVE Pegasus automotive grade AI platform. The platform has been designed for safety and performance. The platform meets the industry standards for the highest level of automotive functional safety.

Pegasus features two NVIDIA Xavier SoCs (system-on-chips) and two next-generation GPUs (graphics processing units) to deliver a performance of 320 trillion operations per second. Pegasus delivers 10x better performance and 10x higher data bandwidth than its predecessor.

Intel (INTC) is also developing its AV solution using Mobileye’ technology, which it acquired in 2017.

AI at the edge

In the second fiscal quarter of 2019, NVIDIA introduced its Xavier SoC on Jetson platform for AI at the edge. Jetson Xavier delivers over 30 trillion operations per second and uses little power, which makes it ideal for robots and drones used in industries like manufacturing, logistics, agricultural, and retail.

Next, we’ll discuss NVIDIA’s Professional Visualization segment.

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