'Self-Driving Cars Will Take Time:' Munster Explains What Nvidia's Q4 Automotive Revenue Slide Means For Future Of EVs
Portfolio Pulse from Shanthi Rexaline
Nvidia Corp. (NASDAQ:NVDA) reported a 4% year-over-year decline in automotive revenue, raising concerns about the adoption of self-driving technology in EVs. Despite this, Nvidia's Automotive segment reached a $1 billion annual revenue run-rate in FY2024. The decline is seen as a leading indicator for the adoption pace of self-driving tech, which faces safety and regulatory hurdles. Nvidia supplies self-driving chips to several Chinese automakers and Tesla, which is working to reduce reliance on Nvidia by developing its own supercomputer, Dojo. The KraneShares Electric Vehicles and Future Mobility Index ETF (NYSE:KARS) saw a slight increase, indicating broader EV market optimism.
February 22, 2024 | 8:04 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Geely Automobile Holdings Limited's subsidiary Zeekr, a user of Nvidia's self-driving chips, may be affected by Nvidia's automotive revenue decline.
As a user of Nvidia's self-driving chips, Geely's Zeekr may experience impacts on its technological advancements and market strategy due to Nvidia's reported decline in automotive revenue and the challenges in self-driving tech adoption.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Li Auto, as a customer of Nvidia's self-driving chips, may face implications from the reported decline in Nvidia's automotive revenue.
As a customer of Nvidia's self-driving chips, Li Auto's future product development and market positioning could be influenced by Nvidia's performance and the broader adoption challenges of self-driving technology.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Nvidia's 4% decline in automotive revenue highlights challenges in self-driving tech adoption, despite overall strong quarterly results.
The decline in automotive revenue, despite exceeding analyst expectations in other segments, could raise concerns among investors about the future growth potential of Nvidia's automotive business, particularly in the self-driving technology market.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Xiaomi Corporation, utilizing Nvidia's self-driving chips, could be influenced by the downturn in Nvidia's automotive revenue.
As a client of Nvidia for self-driving technology, Xiaomi's future initiatives in the EV space could be affected by the slowdown in Nvidia's automotive revenue, reflecting broader adoption challenges of self-driving technology.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
The KraneShares Electric Vehicles and Future Mobility Index ETF saw a slight increase, reflecting broader optimism in the EV market.
The increase in KARS ETF suggests that, despite specific challenges in the adoption of self-driving technology, the broader EV market remains optimistic, potentially due to the overall growth and interest in electric vehicles.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70