NVIDIA Ups the Game, Joins Mercedes on Self-Drive Project
NVIDIA's recent NVDA collaboration with Mercedes-Benz from Daimler to develop an in-vehicle computer system and AI computer infrastructure is expected to strengthen the former's presence in the self-driving vehicle market.
The architecture is expected to be used in the next generation of Mercedes-Benz vehicles in 2024 and will be enhanced with upgradable automated driving functions.
NVIDIA DRIVE Infrastructure solutions are used to develop the models so that the development of data-driven and deep neural networks can adapt to the requirements of the regions in which the vehicles are used.
The partnership strengthens NVIDIA's presence in the field of autonomous vehicles and other areas of automotive electronics. It also threatens other chip makers like Intel INTC, Qualcomm QCOM and DXC Technology DXC.
Remarkably, the autonomous automotive industry shows one of the most lucrative perspectives today. A market data forecast report shows that the market for self-driving cars is expected to reach $ 56.21 billion in 2020 and to reach $ 220.44 billion by 2025, an annual growth rate of 36.5%.
In addition, the coronavirus situation is expected to accelerate the introduction of driverless vehicles to pick up passengers, transport goods, and others, as they can limit the spread of the infection.
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Intel, Qualcomm & DXC: main competitors
Thanks to the acquisition of Mobileye, Intel has become a close competitor to NVIDIA in the field of self-driving. The low power consumption of Mobileye chips and their ability to create cards for self-driving systems through the Road Experience Management platform have helped Intel establish itself in the market.
In addition, Intel recently announced two new deals in China and South Korea with SAIC and Daegu Metropolitan City, respectively. These agreements are likely to expand Zacks Rank # 3 (Hold )’s global presence in driver assistance systems and autonomous mobility as a service.
Qualcomm's entry into the autonomous vehicle market is also giving NVIDIA and Intel increasing concern. In January, the company launched the first unique automotive platform - Snapdragon Ride - that automakers can use AI to turn their vehicles into self-driving cars.
In particular, Qualcomm has also partnered with General Motors GM to provide avant-garde self-driving technologies with a diversified portfolio of automotive solutions. In addition, vehicle partners - Audi, Ford and Ducati - had once shown how Qualcomm's 9150 C-V2X chipsets can be used between vehicles for tasks such as negotiating the right of way. Qualcomm is currently 3rd in Zacks.
Another company that is fighting for a position in the field of self-driving vehicles is DXC Technology. The company's takeover of the digital innovator Luxoft was a big step in this direction. Luxoft already has partners like Daimler. The combination of Luxoft's digital engineering skills and DXC's technological expertise is expected to strengthen its presence in the automotive industry.
In January, Luxoft announced a partnership with LG Electronics to accelerate the development of mass production systems on a large scale. These include digital cockpit systems, entertainment in the rear seats, cabin and central stack display, infotainment in the vehicle and others. DXC currently has a Zacks rank of 5 (Strong Sell).
Nevertheless, NVIDIA is currently firmly established in the autonomous vehicle market. In particular, the company's focus on integrating AI into the cockpit for infotainment systems enables it to increase its autonomous driving sales. The Zacks Rank # 2 (Buy) company expects its automotive TAM to be $ 30 billion by 2025, which is $ 25 billion for driving, $ 3 billion for training / developing deeper neurons Networks and $ 2 billion for validation and verification. The full list of today's Zacks # 1 Rank (Strong Buy) stocks can be found here.
NVIDIA's auto partnerships hold the key
NVIDIA works with more than 320 automakers, world-class suppliers, automotive research institutions, HD mapping companies and startups to develop and deploy AI systems for self-driving vehicles.
Interestingly, at this time last year, NVIDIA worked with Volvo to develop a scalable, AI-based autonomous driving system using the former's Drive AGX Pegasus computer board.
Uber has been using NVIDIA's AI computer technology in its fleet of self-driving vehicles for more than two years. In the meantime, Volkswagen has worked with NVIDIA's DRIVE IX AI platform to create new cockpit experiences and improve the safety of its future vehicles.
Aurora's Level 4 and 5 self-driving hardware platform uses the NVIDIA DRIVE Xavier processor.
In addition, the company's partnership with Baidu BIDU and the German automotive supplier ZF Friedrichshafen to set up a "series-ready AI platform for autonomous vehicles" specially developed for the Chinese market is positive.
In addition, Toyota has expanded its partnership with NVIDIA to expand its autonomous vehicle development program.
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