Chinese automakers and mobility providers, including BYD (BYDDF)(HK:1211), XPeng (NYSE:XPEV), Hyper, and various others, are embracing Nvidia’s (NASDAQ:NVDA) latest in-vehicle computing platform, NVIDIA DRIVE Thor, for the development of autonomous driving, artificial intelligence (AI) training, and other digital features. This widespread adoption is expected to drive up Nvidia’s automotive revenue, which surpassed the $1 billion milestone for the first time in Fiscal 2024.
NVIDIA DRIVE Thor offers robust AI performance and integrates a wide range of intelligent functionalities, including autonomous driving, parking, driver/passenger monitoring, and AI cockpit features, into one platform. BYD, the leading electric vehicle (EV) manufacturer, is extending its partnership with NVIDIA and utilizing DRIVE Thor not only for vehicle integration but also for cloud-based AI development and training.
Meanwhile, XPENG and Hyper are adopting the NVIDIA DRIVE Thor platform as the core AI system for their upcoming EVs. Besides for these EV makers, Li Auto (NASDAQ:LI) and ZEEKR, a Chinese electric automobile brand owned by Geely Automobile Holdings, have also committed to incorporating DRIVE Thor into their future vehicles.
Is Nvidia Stock a Buy or Hold?
Nvidia stock has gained nearly 242% in one year, driven by solid demand for its GPUs that power AI computing. Despite this notable growth in its share price, Wall Street maintains a bullish outlook on NVDA stock. The company’s leadership in AI, focus on advancing the accelerated computing and autonomous vehicle platform, and new product launches position it well to deliver solid financials.
With 39 Buy and two Hold recommendations, Nvidia stock has a Strong Buy consensus rating. Analysts’ average price target on NVDA stock is $913.74, which implies 3.30% upside potential from current levels.
