Nvidia: Powering AI. Will it also Dominate Autonomous Driving?
Today, Nvidia is considered one of the “Magnificent 7” high-flying stocks. Its Graphics Processing Units (GPUs) are critical to the growing capabilities of Large Language Models (LLMs) such as ChatGPT and Gemini. Nvidia’s GPUs offer a parallel processing platform that is particularly important for training LLMs.
What might be less known is that the capabilities making Nvidia GPUs advantageous for LLMs are also crucial for autonomous driving technology. In 2021, I wrote about the critical importance of Nvidia’s technology to the AI and machine learning required for the development of autonomous vehicles.
Autonomous driving is the most intense machine learning and robotics challenge. - Jensen Huang
Today, the company’s technology continues to be widely used by most firms developing autonomous driving technologies, including Tesla. Nvidia’s GPUs are well-suited for the complex computations and real-time decision-making required for self-driving vehicles.
While Elon Musk is often considered the preeminent technology company CEO, Nvidia’s CEO Jensen Huang might be the best technology founder and executive of our time. In a 2021 keynote speech, Huang described autonomous driving as “the most intense machine learning and robotics challenge.” He detailed how Nvidia was developing autonomous vehicle chips, sensor architecture, data processing, mapping, and fleet command operations. Huang even suggested that cars need to be re-architected because they are too complicated.
Since 2021, Nvidia’s stock has grown nearly 600%. Much of this appreciation has occurred over the past two years as investors have recognized the company’s value to the AI required for LLMs. The LLM sector is expected to become a $36 billion market by 2030. Interestingly, one report suggests the autonomous driving sector will become a massive $2.3 trillion market by 2032. Imagine the potential growth in Nvidia’s valuation if autonomous driving capabilities can advance from a few existing Level 3 applications (conditional automation) to Level 5 (full automation) in the future.
Readers should note, however, in 2017 when I originally acquired Nvidia shares, I assumed that Level 5 autonomy would be plentiful by now. In 2017, most had never heard of an LLM. This proves that trying to predict the future is a very challenging endeavor.
Disclosure: I no longer own Nvidia shares.
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TaaSMaster, LLC is not a registered investment advisor or broker/dealer. All investment opinions expressed by TaaSMaster, LLC are from personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur.