An Autonomous Vehicle Future Could Make You Turn to Nvidia
Identifying opportunities is the key to successful stock trading. While technology helps you in online stock trading, it also creates new opportunities for investing.
Driverless Tech and Hyperloop Set to Transform Transportation
The transportation industry is heating up. On one side of the equation you have the autonomous car technology, while on the other you have the groundbreaking people and goods transportation technology known as hyperloop. Never before seen innovation is shaping up the way we're set to travel in the near future, and it would be a good time to think of investing in this sphere.
The interesting part here is that the reliance on technology has caused the transportation sector to welcome more than the conventional automobile manufacturers. Tech giants are an integral part of the equation now, of which Nvidia ($NVDA) seems to particularly excite its investors.
How Far Can Nvidia Influence the Automotive Industry?
For all the talk of Nvidia's contributions to driverless car technology in terms of hardware and software and its collaboration with major automobile manufacturers, its financial results haven't quite reflected that. In the last quarter, the company's automotive business could only generate $145 million in terms of sales, which was just a 4% year over year rise. It proved that the automotive business is Nvidia's slowest growing division, and also its smallest, when you consider that the company's total revenue last quarter stands at around $3.2 billion. The automotive revenue makes up only 4.5% of it.
A Driverless Future Is Promising for Nvidia
But there is investor excitement revolving around Nvidia's automotive business. And that doesn't have to do much with its current business of supplying in-car infotainment platforms as much as it has to do with its future contributions to the computing power that could soon become integral to all autonomous vehicles, says Motley Fool analyst Ashraf Eassa in this article on Nasdaq.
Nvidia admits, as the article reports, that every vehicle in the future would be autonomous. They said this prediction was for the "long term". Nvidia implies that by 2035 the driverless market open to it will touch $60 billion. Based on this prediction, the company has a lot to capitalize on. There is a lot of opportunity out there, and Nvidia plans to make the most of it not just by supplying individual hardware components and software solutions, but end-to-end solutions. That would make the company's contributions more valuable and integral to the industry.
Tegra Processes and AI Help Prepare Nvidia for the Autonomous Future
The core element of these end-to-end solutions involves the company's Tegra processors powering them. In preparation for that, $NVDA is processing a lot of data for artificial intelligence (AI). The company is actively collecting data and is training AI models on the basis of this data. It is also running simulations and driving the vehicles in the real world, enabling it to perfect its technology and prepare itself firmly for the future. Nvidia claims it has over 370 partners working on these autonomous vehicle technologies. Among these are car and truck manufacturers, automobile component suppliers, sensor providers, mapping specialists and research institutions. This has impressed investors, which explains their enthusiasm. They feel the company is really serious about being a major player in the autonomous vehicle segment and is making sizeable investments to prepare itself for a self-driving future. It is evident when you see how high the stock is valued.
Hyperloop Efforts by Billionaire Investors
Meanwhile, also keep your eyes peeled out for the hyperloop industry. This revolutionary high speed land transportation system - capable of airplane speeds at the price of rail transportation - was originally proposed by Silicon Valley entrepreneur Elon Musk, but many other companies have pounced on the idea and made preparations and active plans.
Prominent among these is Sir Richard Branson's startup Virgin Hyperloop One which seems closest to attaining real world application. Tesla Motors' Elon Musk ($TSLA) himself is in the field as well, testing and building tunnels for hyperloop transportation through his startup, The Boring Company, along with tests on pod design and speed too. Tesla Motors will also benefit from the driverless car tech push we discussed earlier, though its path hasn't been free of hurdles.
Technology has a lot to offer, not just in terms of investment opportunities but also in efficient online stock trading. And TradeZero makes the most of the technology to help you trade well. Call us at +1 954-944-3885, or email firstname.lastname@example.org.
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