Signage on the Nvidia Corp. places of work in Taipei, Taiwan, on Tuesday, Jan. 28, 2025. Photographer: An Rong Xu/Bloomberg by way of Getty Photographs
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U.S. chipmaker Nvidia‘s auto section income greater than doubled within the newest quarter to a report excessive on sturdy demand for driver-assist software program.
Whereas the corporate’s largest income stream by far is chip methods that energy synthetic intelligence, Nvidia has predicted its merchandise that energy driver-assist know-how may change into its subsequent “billion-dollar” enterprise.
Income of Nvidia’s automotive and robotics section rose 103% yr on yr to $570 million within the fourth quarter of the 2025 fiscal yr. That introduced the section’s income for the fiscal yr to $1.69 billion, above $1 billion for a second-straight yr.
The newest enhance in income was as a consequence of to gross sales of Nvidia’s “self-driving platforms,” in keeping with the corporate’s CFO.
“This development highlights Nvidia’s growing publicity to powering ADAS, autonomous autos, and robotics by its DRIVE platform and associated applied sciences,” Brady Wang, semiconductor analyst at Counterpoint Analysis, mentioned in an e mail.
CEO Jensen Huang mentioned in Nvidia’s earnings name the corporate expects that “each single one” of the 1 billion vehicles on the roads at the moment “might be robotic vehicles” that gather knowledge which Nvidia-supported AI methods will help refine, in keeping with a FactSet transcript.
Automotive and robotics is “on the point of take off,” doubtless as a consequence of investments in autonomous autos resembling Waymo and Tesla, Gene Munster, managing accomplice at Deepwater Asset Administration, mentioned in an e mail. Munster additionally estimated that round 15 corporations are constructing humanoid robots, doubtlessly growing demand for Nvidia chips.
“The efficiency of that section is a vital story under the fold that is not getting a lot consideration as a result of it is small,” he added, “however they could be a a lot greater a part of income going ahead.”
Autos and robotics unit presently accounts for 1.45% of Nvidia’s complete income.
Counterpoint’s Wang expects this development to proceed with Nvidia’s “growing adoption of L2+ and extra superior methods”.
A number of Chinese language electrical automotive corporations, together with BYD, Nio and Zeekr, use Nvidia’s driver-assist chip methods.
“Along with autonomous driving, I additionally anticipate that robotics and bodily AI will expertise a hype,” Wang added, “adopted by real-world purposes within the coming years, sustaining the long-term development of this sector.”
