Nvidia Powers Volvo’s Electrical Architecture, A Big Growth Category For The Chipmaker

Summary:

  • The “software-defined car” trend is revolutionizing the auto industry, with Volvo’s EX90 SUV exemplifying the shift towards vehicles packed with digital technology.
  • Nvidia’s powerful chips are crucial for AI and automotive advancements, with significant revenue growth driven by high demand for their supercomputing capabilities.
  • Despite export restrictions to China, Nvidia’s automotive business remains promising as more carmakers adopt advanced electronic architectures that require the chips.
  • While Nvidia faces valuation concerns and competition, its dominance in the AI and automotive sectors suggests a positive long-term investment outlook.

Volvo EX90, full electric SUV, outside the official dealership.

Volvo EX90, full electric SUV, outside the official dealership.

Luca Piccini Basile/iStock Editorial via Getty Images

The latest buzz phrase to mesmerize the global auto industry is the “software defined car,” a descriptor for vehicles that are increasingly electrified, containing features – some once mechanical – that


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