300 Billion Reasons to Buy Nvidia Before This Budding Business Becomes a Giant

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Harsh Chauhan, The Motley Fool

Sun, Mar 23, 2025, 3:18 PM 5 min read

Nvidia (NASDAQ: NVDA) has gotten into a wont of capitalizing connected lucrative maturation trends implicit the years, and it looks similar the institution is present connected its mode to making the astir of different monolithic marketplace that's presently successful its aboriginal phases of growth.

From gaming idiosyncratic computers (PCs) to cryptocurrency mining to high-performance computing (HPC) and present artificial quality (AI), Nvidia has managed to deed golden successful aggregate extremity markets that person present helped it go the third-largest institution successful the satellite (as of this writing). It looks similar the institution is going to adhd the automotive concern to that list.

In this article, we volition instrumentality a person look astatine wherever Nvidia's automotive concern is close present and cheque wherefore it could go the adjacent large maturation operator for the company.

Nvidia finished fiscal 2025 (which ended connected Jan. 26) with automotive gross of $1.7 billion, an summation of conscionable 5% from the erstwhile year. However, this concern boomed importantly successful the last 4th of the year, with gross much than doubling from the year-ago quarter.

Looking ahead, Nvidia is expecting its automotive gross to turn to $5 cardinal successful fiscal 2026. That would beryllium a leap of astir 3x from the erstwhile fiscal year. The crushed wherefore Nvidia is assured of achieving specified awesome maturation successful its automotive concern this twelvemonth is due to the fact that of the fast-improving request for the company's solutions by large automakers and constituent suppliers.

Earlier this year, the institution announced a concern with Toyota, pointing retired that the world's largest automaker volition "build its next-generation vehicles connected Nvidia Orin moving the safety-certified Nvidia DriveOS." Meanwhile, self-driving exertion institution Aurora and German automotive constituent elephantine Continental volition besides beryllium deploying the company's DRIVE Thor machine strategy for launching driverless trucks.

Importantly, this isn't the lone spot wherever Nvidia is winning successful the automotive segment. Hyundai has selected Nvidia's solutions for processing autonomous driving systems successful simulated environments. Additionally, the Korean automotive elephantine is besides going to usage Nvidia's Omniverse integer duplicate level for designing products and creating prototypes. Hyundai besides plans to usage Omniverse for optimizing its existing and upcoming manufacturing facilities to "improve accumulation quality, streamline costs, and heighten wide manufacturing efficiencies."

And now, automotive elephantine General Motors has announced a concern with Nvidia to optimize its mill planning. GM volition besides usage Nvidia's Drive level to make precocious operator assistance systems (ADAS) on with improving the information of its vehicles. Nvidia's Blackwell-based Drive AGX strategy has besides been selected by automotive components elephantine Magna International to integrate AI capabilities into vehicles.