Graphic chip behemoth, NVIDIA Corp.NVDA has been trying to strengthen its foothold in the artificial intelligence (AI) space. During the 2016 GPU Technology Conference in China, the company introduced NVIDIA DRIVE PX 2, a smaller and more energy-efficient AI computer that automakers can use for self-driving cars.
DRIVE PX 2 is powered by Baidu, Inc.'s BIDU AutoBrain technology that facilitates mapping, detecting, positioning and decision making. Earlier this month, NVIDIA and Baidu, a Beijing-based Internet search company, announced a strategic alliance to focus on using AI to develop a computing platform for self-driving cars.
According to Rob Csongor, vice president and general manager of Automotive at NVIDIA, "Bringing an AI computer to the car in a small, efficient form factor is the goal of many automakers." Furthermore, "NVIDIA DRIVE PX 2 in the car solves this challenge for our OEM and tier 1 partners, and complements our data center solution for mapping and training."
Consumers are increasingly using cameras to stay in their lane and lower accidents but this is not the main reason behind the development of this technology. Statistics show a dramatic rise in distracted driving and how a new auto technology like Automatic Emergency Braking (AEB) can prevent tens of thousands of rear-end collisions per year, thus saving countless lives. NVIDIA is also trying to revolutionize technology to make cars a safer means of getting around. This, in turn, is expected to benefit NVIDIA going forward.
NVIDIA also introduced two new GPUs (graphics processing unit) - the Tesla P4 and Tesla P40, the most advanced accelerator.
Both the GPUs, based on NVIDIA's next generation Pascal architecture, feature 8-bit (INT8) operations and provide 45 times faster response than older Intel INTC CPUs and GPUs launched less than a year ago.
The company claims that the GPUs accelerator enhances high performance computing (HPC), deep learning and is suited for intensive computational workloads at data centers.
NVIDIA continues to be the world's biggest graphic processing hardware provider for PCs since the past several decades. However, the company's latest announcements (after it started supplying chips for autonomous vehicles) indicated that it intends to be the largest player in the machine learning arena too.
Furthermore, by expanding its business avenues, the company will be able to reduce its dependency on the PC industry, which is currently declining.
We believe that the company is growing well in the AI business as is evident from the recently reported quarterly results and was one of the very few chip makers that performed well on the stock market. Shares of NVIDIA gained nearly 167.7% in the last one-year period while returning approximately 84.3% year-to-date.
NVIDIA CORP Price
NVIDIA has a Zacks Rank #1 (Strong Buy). A stock in the broader technology sector worth considering is Ambarella, Inc. AMBA , also sporting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
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