NVidia Stock: Rising Fast on AI, Drones & Cars

Posted On October 11, 2017 2:44 pm

NVidia Corporation (NASDAQ:NVDA) is up about 73% year-to-date. NVidia stock is on fire because the company has diversified its business, focusing on futuristic markets. The company is growing gaming, data center, AI, cryptocurrency and autonomous cars. Analysts think that the next major stock boost for the company will be coming from its recent deals with Chinese tech players.

Last month, NVidia signed deals with three major Chinese companies: Alibaba, Baidu and Tencent. NVidia will provide GPU-based accelerators for these companies. Alibaba, Tencent and Baidu have selected NVidia’s V100 data center GPU. This GPU has no less than 21 billion transistors. The chip is at least five times efficient as compared to the existing technologies used by the Chinese companies. NVidia stock will also benefit from the massive rise of public Cloud markets and upcoming 5G revolution.

Market research firms IDC and SunTrust estimate that the Artificial Intelligence market will grow a rate of 54% to reach $46 billion net worth by 2020. After Google, NVidia is the most important company in the AI sector.

In gaming, NVidia is powering the devices of two of the biggest names in the gaming industry: GeForce and Nintendo Switch.

The drones market, whose net worth by the end of 2020 will exceed $127 billion, is the new focal point of NVidia. The company recently announced a partnership with Chinese e-commerce behemoth JD.com. NVidia will joins hands with JD for the manufacturing of autonomous drones for retail, delivery, agriculture and entertainment. JD selected NVidia’s Jetson platform, which uses AI to help drones in navigation through uneven terrain.

NVidia has also started to make waves in the hot smart assistance market. The company recently announced a deal with Google to integrate Google Smart AI-based assistant with NVidia’s Shield 4K HDR streaming media player. The 4K HDR streamer is very popular among media and gaming enthusiasts. The AI-loaded streamer will allow users to give voice commands during gameplay. NVidia Shield will also be integrated with movie streaming, Smart home, and YouTube and Google services.

NVidia’s Drive PX self-driving platform is getting a lot of traction in the lucrative driverless cars industry. And on Tuesday, NVidia launched the world’s first AI system that can drive autonomous robotaxis. The company also said that it was working on a fleet of autonomous trucks.

Related: Here’s What Short Sellers Get Wrong About This Company

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