Market Overview

Robotics Analyst: Nvidia's AI Developments Don't Change The Self-Driving Car Timeline

Robotics Analyst: Nvidia's AI Developments Don't Change The Self-Driving Car Timeline
Related NVDA
Nvidia Shares Up After Earnings, But A Weak Recovery Does Not Bode Well For The Chart
52 Stocks Moving In Friday's Mid-Day Session
The Love Affair With Nvidia Is Over As Investors Come To Their Senses (TalkMarkets)

NVIDIA Corporation (NASDAQ: NVDA) stirred the markets Tuesday with news of its groundbreaking supercomputer capable of supporting fully autonomous vehicles. The announcement drove Nvidia shares to the $190 level.

But for all the excitement, the world’s first artificial intelligence computer for “Level 5” autonomy may not widely impact the AV space.

“This is definitely a net positive for the entire self-driving car space but doesn't change our thesis on electric or self-driving vehicles,” Austin Bohlig, robotics analyst at Loup Ventures, told Benzinga. “At the least, it may have modestly shortened the time frame when we begin to see self-driving vehicles on the road, but our 2020 date for the influx to begin still holds.”

Nvidia is already considered a leader among AV suppliers. Loup managing partner Gene Munster previously listed Nvidia as the field’s top components manufacturer and the best way to play the AV theme outside of a Tesla Inc (NASDAQ: TSLA) stake.

The Tesla Impact

Tesla currently uses Nvidia chips, but was recently reported to have partnered with Advanced Micro Devices, Inc. (NASDAQ: AMD) in an alleged step toward self-sufficiency. Analysts posited that the move could be indicative of Tesla’s eventual shift from Nvidia products but insisted that Nvidia investors had little to worry about.

Tesla supporters were similarly unconcerned by Nvidia’s latest demonstration of strength.

“As it relates to Tesla, I don’t think they are second guessing themselves [with regard to the AMD partnership],” Bohlig said. “While Nvidia may have a slight [leg] up in the GPU space, AMD has made great progress over the last couple years and is much more competitive today.”

Loup still considers Tesla and Alphabet Inc (NASDAQ: GOOGL)’s Waymo leaders in self-driving auto manufacturing.

Related Links:

The Autonomous Future: Munster's 2020 Vision Of The Road

Gene Munster: Traditional Car Manufacturers Face 'Innovator's Dilemma'

Posted-In: Analyst Color News Travel Top Stories Exclusives Tech Trading Ideas General Best of Benzinga


Related Articles (AMD + GOOGL)

View Comments and Join the Discussion!

Latest Ratings

CBBMorgan StanleyUpgrades10.0
GDCredit SuisseDowngrades184.0
GEOJP MorganDowngrades26.0
TRUERBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Weakness In Corcept Shares Is 'Overdone,' According To Analyst

Retail Analyst Shares His Department And Specialty Picks