Nasdaq listed Nvidia, a key player in modern AI sees the automotive businesses driving its revenue in the ongoing quarter, Q3 of fiscal 2023. Though the company’s Q2 performance missed analyst estimates, in sync with other key tech majors, sequential growth in data center and automotive business are expected to cushion the revenue decline in gaming and professional visualisation.
For the second-quarter of the current fiscal, its revenue from automotive business was at $220 million, up 45 percent from a year ago and up 59 percent from the previous quarter.
Further the company announced rollout plans of new model vehicles using the Drive Orin compute platform by partners Nio, Li Auto, JIDU, and Human Horizons. This coupled with Pony.ai’s use of Drive Orin across its line of self-driving trucks and robotaxis is seen leading the company’s revenue going forward.
Speaking about the growing share of automotive business and the use of technology, specifically AI in automotives, Jensen Huang, founder and CEO of Nvidia said, “We are navigating our supply chain transitions in a challenging macro environment and we will get through this.”
He believes that accelerated computing and AI, the pioneering work of our company, are transforming industries, “Automotive is becoming a tech industry and is on track to be our next billion-dollar business. Advances in AI are driving our Data Center business while accelerating breakthroughs in fields from drug discovery to climate science to robotics.”
Interestingly Nvidia Drive platform powers all 30 of the 30 top autonomous vehicle data centers. About 86 percent of business and tech executives expect AI to become a mainstream technology in their companies, according to a PwC survey. Such results show that advanced data analytics and AI software will be necessary for businesses to remain competitive across industries including automotive.