Nvidia Q3 Automotive and Robotics Revenue Grows 32% to $592 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: Fool
- Revenue Growth: Nvidia's automotive and robotics segment saw a 32% increase in Q3 2023, reaching $592 million, which, while small relative to total revenue, indicates potential growth drivers as self-driving cars and humanoid robots gain traction in daily life.
- Market Dependency: Currently, 90% of Nvidia's revenue comes from its data center business, highlighting its heavy reliance on the AI market, which poses significant financial risks if this sector slows down, especially as clients like OpenAI face substantial losses.
- Competitive Pressure: With hyperscaler clients like Amazon, Google, and Microsoft investing in custom chips, Nvidia faces increasing competitive pressure, as these companies not only represent significant customers but also potential rivals that could impact Nvidia's market share.
- Future Challenges: Nvidia's low forward P/E ratio of 23 reflects market concerns about the sustainability of its business model; although there are promising opportunities in quantum computing and autonomous driving, investors may want to wait for clearer signs of diversification before considering stock investments.
NVDA
$189.21+Infinity%1D
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 183.690
Low
185.00
Averages
255.63
High
352.00
Current: 183.690
Low
185.00
Averages
255.63
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
