NVIDIA Corporation (NASDAQ:NVDA) announced it has formed a strategic partnership with ZF and HELLA to deliver AI technology with the New Car Assessment Program (NCAP) safety certification for the mass deployment of self-driving vehicles. The agreement is non-exclusive.
ZF, one of the industry’s largest automotive suppliers, and HELLA, a leading tier 1 supplier of camera perception software and sensor technologies, will provide customers with a complete self-driving system that integrates front camera units, as well as supporting software functions and radar systems.
Using the NVIDIA DRIVE™ PX AI platform, the partnership aims to produce the highest NCAP safety ratings for passenger cars, while also addressing commercial vehicle and off-highway applications. NVIDIA DRIVE PX offers both NCAP safety and self-driving capabilities on a single platform ready for production.
NVIDIA DRIVE PX will enable ZF and HELLA to develop software for scalable systems starting from modern driver assistance systems that connect their advanced imaging and radar sensor technologies for autonomous driving functionality.
“Creating a self-driving car is one of society’s most important endeavors — and one of the most challenging to deliver,” said Jensen Huang, founder and CEO, NVIDIA. “Our work with ZF and HELLA will bring AI self-driving solutions that include NCAP safety for millions of cars worldwide.”
Dr. Stefan Sommer, CEO of ZF Friedrichshafen AG, said: “We are building up a powerful ecosystem step by step. Earlier this year ZF became the first supplier to adopt NVIDIA AI technology for cars and commercial vehicles in the ZF ProAI box. Just a few days ago HELLA and ZF joined forces in a non-exclusive partnership, and now together we are partnering with NVIDIA to make our roads safer and to support the development of autonomous driving functions.”
Dr. Rolf Breidenbach, CEO at HELLA KGaA Hueck & Co., said: “Combining our expertise in front camera perception software and radar sensor technologies with NVIDIA’s expertise in deep learning hardware and software will drive technological developments for broad adoption of self-driving capabilities across many transportation segments.”
Shares of Nvidia closed yesterday at $152.15, down $1.68 or -1.09%. NVDA has a 1-year high of $168.50 and a 1-year low of $45.27. The stock’s 50-day moving average is $142.01 and its 200-day moving average is $114.38.
On the ratings front, NVDA has been the subject of a number of recent research reports. In a report issued on June 21, Canaccord analyst Matt Ramsay reiterated a Buy rating on the stock, with a price target of $155, which represents a slight upside potential from current levels. Separately, on June 20, KeyBanc’s Michael McConnell upgraded the stock to Hold.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matt Ramsay and Michael McConnell have a yearly average return of 28.2% and 8.3% respectively. Ramsay has a success rate of 67% and is ranked #39 out of 4596 analysts, while McConnell has a success rate of 62% and is ranked #965.
Sentiment on the street is mostly bullish on NVDA stock. Out of 25 analysts who cover the stock, 14 suggest a Buy rating , 9 suggest a Hold and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $139, which reflects a potential downside of -9% from last closing price.
NVIDIA Corp. designs and manufactures computer graphics processors, chipsets, and related multimedia software. The company operates through two segments: Graphics Processing Unit and Tegra Processor. The Graphics Processing Unit segment includes sales of the company’s GeForce discrete and chipset products that supports desktop and notebook PCs plus license fees from Intel and sales of memory products. The Tegra Processors segment provides processors that deliver superior visual and multimedia experience on tablets, smart phones and gaming devices while consuming minimal power.