Nvidia predicts trillion-dollar opportunity in autonomous vehicles; good news for Nvidia stock.
From Nasdaq: 2025-06-24 04:49:00
Nvidia (NASDAQ: NVDA) reported over $44 billion in revenue for Q1 2026, with $39.1 billion from data center sales, including powerful GPUs for AI development. CEO Jensen Huang predicts AI data center spending to hit $1 trillion yearly by 2028, eyeing a trillion-dollar opportunity in autonomous vehicles.
Self-driving cars rely on AI software trained on vast real-world data. Companies like Alphabet’s Waymo and Tesla lead in autonomous ride-hailing trips, investing billions in proprietary hardware and software. Nvidia’s Drive platform, with the Thor chip, gains traction with top car brands for autonomous driving solutions.
Huang sees autonomous vehicles as a multitrillion-dollar industry in the AI powered robotics sector. Nvidia’s automotive revenue could triple to $5 billion in fiscal 2026, with car makers investing in Nvidia’s hardware like the Thor chip and software like Cosmos for self-driving AI models.
Despite the dominance of its data center segment, Nvidia’s automotive revenue growth is promising. Wall Street estimates $199 billion total revenue for fiscal 2026, with automotive revenue potentially tripling to $5 billion. With a forward P/E ratio of 33.5, Nvidia stock looks attractive for long-term investors eyeing autonomous driving growth potential.
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Read more at Nasdaq: This Is Nvidia’s Next Trillion-Dollar Opportunity, According to Jensen Huang — and It’s Something You Might be Overlooking