Watch Out for NVDA Stock in 2017
NVIDIA Corporation (NASDAQ:NVDA) stock was the star performer of 2016, and it does not look like there is a pause for NVIDIA stock in 2017. In his keynote address during the biggest tech show, CES 2017, NVIDIA CEO Jen-Hsun Huang stunned everyone by showing the company’s capabilities. He named the new partnerships with auto players to strengthen the company’s position.
NVDA stock gained over three percent in the last trading session.
NVIDIA CES 2017 was all about the company’s vision for reinventing gaming, TV and transportation, which underscored the company’s leadership in artificial intelligence (AI), deep learning, gaming, and automotive. Jen-Hsun Huang said that what used to be science fiction is going to be reality in a few years. (Source: “NVIDIA CES Keynote Sets Out Future of Gaming, TV, Transportation,” NVIDIA Corporation, January 4, 2017.)
The big news was how NVIDIA technologies will change the way we move around. Scott Keogh, president of Audi of America, LLC, joined the NVIDIA CEO to announce that they were working together to put advanced AI cars on the road by 2020. Jen-Hsun Huang also provided details on partnerships with mapping companies HERE and ZENRIN; and two of the world’s largest automotive suppliers, ZF and Bosch.
This is likely to put NVIDIA way ahead of its rivals and will boost NVIDIA stock further. Investors are already quite optimistic about the ability of the company to profit from these growing areas. NVIDIA stock made spectacular gains of over 200% in the year 2016.
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The company rode high on the success of its “Pascal” graphics processing unit (GPU) chips, which put the company ahead of its competitors. The GPU chips have become a huge success in gaming, virtual reality (VR), self-driving cars, and data center AI computing.
Basking in the glory of its newfound success, the company has ambitious plans for the future. NVIDIA now wants to reinvent the $10.0 trillion transportation industry with the AI car—vehicles that use deep learning-based AI to make driving safer, more personalized, and more enjoyable. This vision would be realized through the company’s forthcoming “Xavier” AI supercomputer on a chip.
NVIDIA’s Xavier drive computers build an AI assistant for drivers, which takes in data from sensors in and outside of the car. This AI “co-pilot” promises to help drivers drive better. NVIDIA said that it would like to turn every car into an AI vehicle and, with the way the company is going, it is likely to reach there in the next few years. This is great news for NVIDIA stock.
Scott Keogh also noted that, since announcing a partnership with NVIDIA 10 years ago, Audi’s sales have jumped from 60,000 cars a year to 210,000 cars in 2016.
With such an impressive show at CES 2017 and a lead in the AI sector for autonomous cars, NVIDIA Corporation is likely to achieve its goals and NVDA stock will likely keep on scaling new heights.