NVIDIA Corporation
NVDA
recently announced the expansion of its partnership with the San Diego-based autonomous driving tech company,
TuSimple
TSP
, to jointly design and develop an advanced autonomous domain controller (“ADC”) specifically for the latter’s Level 4 self-driving trucking applications.
The ADC will serve as the central compute unit of an autonomous truck processing hundreds of trillions of operations per second (“TOPS”), which include mission-critical perception, planning and actuation functions. Integrating NVIDIA’s DRIVE Orin system-on-a-chip (“SoC”) into the ADC unit, TuSimple will enhance its Level 4 autonomous trucking applications.
This collaboration with NVIDIA will accelerate TuSimple’s ability to put self-driven trucks on its Autonomous Freight Network (“AFN”) services, a freight transportation network that allows autonomous trucks to move freight through digitally mapped routes at strategically placed terminals. It will provide the self-driving tech company with a competitive edge in the market.
NVIDIA’s DRIVE Orin SoC powers autonomous driving capabilities, confidence views, digital clusters, and artificial intelligence (“AI”) cockpits. It is designed to handle a large number of applications and deep neural networks that run simultaneously in autonomous vehicles and robots, while achieving systematic safety standards. It consists of 17 billion transistors and delivers 254 TOPS. It enables the developers to build, scale, and leverage one development investment across an entire fleet from Level 2+ systems to Level 5 entirely driverless vehicles.
The company’s foray into the autonomous vehicles and other automotive electronics space is positive. NVIDIA is working with more than 320 automakers, tier-one suppliers, automotive research institutions, high-definition mapping companies and start-ups to develop and deploy AI systems for self-driving vehicles.
NVIDIA’s focus on incorporating AI into the cockpit for infotainment systems is enabling it to grow its autonomous driving revenues. The company expects its automotive total addressable market to be $30 billion by 2025, which comprises $25 billion for driving, $3 billion for training/development of deep neural networks and $2 billion for validation and testing.
During third-quarter fiscal 2022, NVIDIA’s revenues from the Auto market platform totaled $135 million, up 8% on a year-over-year basis. This rise was primarily aided by the sustained recovery in the global automotive production volumes and the ramp-up of self-driving programs.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart
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NVIDIA Corporation Quote
Zacks Rank & Stocks to Consider
Currently, NVIDIA carries a Zacks Rank #2 (Buy), while TuSimple carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor
Salesforce
CRM
and
Hewlett Packard
HPE
, each flaunting a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 60 days.
Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 14.9% in the past year.
The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.
HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 39.8% in the past year.
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