NVIDIA Corporation
NVDA
announced a strategic partnership with the world’s largest electronics manufacturer, Foxconn, to develop automated and autonomous vehicle platforms. Based on NVIDIA DRIVE Orin, Foxconn will produce electronic control units (ECUs) for the global automotive market.
NVIDIA DRIVE Orin is a system-on-a-chip that delivers 254 trillion operations per second and is the central computer for intelligent vehicles. It is the ideal solution for powering autonomous driving capabilities, confidence views, digital clusters and artificial intelligence (AI) cockpits. Foxconn will integrate NVIDIA DRIVE Orin ECUs, as well as DRIVE Hyperion sensors, to manufacture tier-one electric vehicles (EVs) for highly automated driving capabilities.
NVIDIA DRIVE Hyperion is an autonomous vehicle reference architecture that accelerates development, testing and validation by integrating DRIVE Orin-based AI compute with a complete sensor suite that includes 12 exterior cameras, three interior cameras, nine radars, 12 ultrasonics and one front-facing lidar, plus one lidar for ground truth data collection.
With the collaboration, NVIDIA will scale its efforts to meet the spurring demand for intelligent vehicles in the automotive industry. Alternatively, the move will aid Foxconn accelerate its EV production with increased quality, less time-to-market and time-to-cost strategies.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart
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NVIDIA Corporation Quote
NVIDIA’s foray into the autonomous vehicles and other automotive electronics space is a positive. It 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. 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.
However, weakening demand across its Gaming and Professional Visualization market segments put a brake on its growth momentum in the third quarter of fiscal 2023. The company’s third-quarter revenues plunged 17% year over year and 12% sequentially to $5.93 billion. Also, macroeconomic headwinds like persistent supply-chain and logistic issues adversely impacted the company’s ability to meet the demand for chips used in the data center end market in the quarter.
Zacks Rank & Stocks to Consider
NVIDIA currently carries a Zacks Rank #4 (Sell). Shares of NVDA have lost 51.1% in the past year.
Some better-ranked stocks from the broader
Computer and Technology
sector are
Bandwidth
BAND
,
Clearfield
CLFD
and
Zscaler
ZS
. While Bandwidth and Clearfield currently sport a Zacks Rank #1 (Strong Buy), Zscaler carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for Bandwidth’s fourth-quarter 2022 earnings has been revised by a penny to 4 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 25 cents to 37 cents per share in the past 30 days.
BAND’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 67.5% in the past year.
The Zacks Consensus Estimate for Clearfield’s first-quarter fiscal 2023 earnings has been revised 15 cents northward to $1.02 per share over the past 60 days. For fiscal 2023, earnings estimates have improved 37.5% to $4.95 per share over the past 60 days.
CLFD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 39.7%. Shares of the company have risen 12.8% in the past year.
The Zacks Consensus Estimate for Zscaler’s first-quarter fiscal 2023 earnings has been revised 3 cents north to 29 cents per share over the past 30 days. For fiscal 2023, earnings estimates have moved north by 6 cents to $1.23 per share in the past 30 days.
ZS’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 60.8% in the past year.
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