Increased computing capabilities in automotive electronics is good for Tegra processors
With each passing day, manufacturers equip cars with increased computing capability in both the drive train and the dashboard. Dashboard functionalities within cars, including the infotainment system, digital cluster, and automatic driver assistance, are rapidly being computerized. Thus, all these developments point towards a transition in the automotive electronics market, which already is a huge market.
According to Strategy Analytics, as the above chart shows, the market for Advanced Driver Assistance Systems (or ADAS) is expected to be worth around $15 billion by 2016, growing at a CAGR of 23%. In Nvidia’s (NVDA) Tegra business, the automotive segment is the fastest growing subsegment. Apart from being a fast growth segment, it offers higher gross margins as compared to the devices. In 4Q15, Nvidia’s automotive segment revenue almost doubled on a year-over-year basis.
You can consider investing in the VanEck Vectors Semiconductor ETF (SMH) to gain exposure to Nvidia. The company makes up about 1.94% of this ETF.
Long standing presence in the automotive space along with partnerships give Nvidia an edge over its peers
According to Nvidia, the company’s automotive platforms appear to be on a sharp upward trajectory. In 2015, over 7.5 million cars are using Nvidia’s technology, up from 4.7 million in 2014. For the past decade, Nvidia has been working on building its automotive computing platform, and therefore is in a strong position to leverage this growth. The company’s customers include prestigious automobile companies like Volkswagen, Honda (HMC), BMW (BMW), and Audi (AUDVF).
With all of its recent launches, Nvidia is keen to enhance and strengthen its grip on the automotive market, which continues to be a key driver for its growth.
With AES stock trading close to a decade high, investors must be wondering if the stock has any steam left. In this series, we'll look at its earnings growth, valuation, and outlook.
In another setback for Boeing (BA), China might not buy the company's 737 MAX jets as part of its trade negotiations with the US.
Micron was the hardest hit by the semiconductor downturn due to weak economic demand arising from the US-China trade war.
CannTrust (CTST) announced that it's scheduled to report its fourth-quarter earnings on March 28 before the market opens.
Yesterday, Apple (AAPL) launched a newly upgraded range of its iPad Air and iPad mini devices ahead of its March 25 special event.
Nike (NKE) is scheduled to report its earnings results for the third quarter of fiscal 2019 after the market closes on March 21.