How to Make Money From the Growth of Autonomous Cars

NVIDIA (NVDA) holds a leading position in the GPU market, but the company has also transformed itself into a significant player in the continuously rising automotive industry. Recently, NVIDIA introduced a new single-processor configuration for its Drive PX 2 supercomputer.

Moreover, the company detailed that the processor is very small in size, more energy efficient AI computer specifically for self-driving cars as well as mapping. This is another massive step for the company in the direction of its self-driving car future.

Most significantly, the company has also partnered with Baidu (BIDU) to develop a technology platform for self-driving cars.
Both Baidu as well as NVIDIA have an extensive history of working together on AI systems. The project will unite Baidu’s cloud platform and mapping expertise with the self-driving processor platform launched by NVIDIA at the starting of 2016.

Apart from this, NVIDIA also claimed that no other companies till now around the globe have validated the ability to assimilate this system and organize it at scale for millions of cars to drive by themselves.
How to Make Money From the Growth of Autonomous Cars
Image by Monoart / Pixabay
The autonomous car market is growing at a rapid pace and there are several companies competing to gain the early mover’s advantage.

As a matter of fact, Google (GOOG)(GOOGL) was the first company to introduce the idea of self-driving cars. Google X has commanded one of the most high-profile autonomous vehicle programs with the help of its own website and a highly visible testing convoy of peculiar prototypes.

Moreover, Google has successfully found its first automotive companion in Fiat Chrysler Automobiles (FCAU), targeting to twice its test convoy with 100 hybrid Pacifica minivans. The company is belligerently focusing on the automotive segment, as it has expanded its testing conditions, for ex- wet, rainy, mountain conditions, etc.

Another significant company that is also aggressively focusing on the self-driving cars is NXP Semiconductors (NXPI). The company is well positioned for the future of the automotive industry. The company has turned itself into the largest supplier of automotive semiconductors worldwide, with products oscillating from temperature sensors to advanced driver assistance systems.

Throughout the most recently reported quarter, the automotive segment produced $858 million, around 36 percent of the company’s overall revenue. Nowadays, the automotive segment has turned into the largest segment; NXP Semiconductors is still well diversified.

Investors looking to profit from the growth of autonomous cars are spoilt for choice. In my opinion, the best way to profit from this trend would be to diversify your portfolio and buy each of the aforementioned companies.
Published on Sep 21, 2016
By Prudent Investor

Copyrighted 2016. Content published with author's permission.

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