NVIDIA Corporation (NASDAQ:NVDA) and Continental, one of the world’s largest automotive technology companies, today announced they are partnering to create top-to-bottom AI self-driving vehicle systems built on the NVIDIA DRIVE™ platform, with a planned market introduction starting in 2021.
The partnership will enable the production of AI computer systems that scale from automated Level 2 features through full Level 5 self-driving capabilities, where the vehicle has no steering wheel or pedals.
Dedicated engineering teams from each company will work together to develop self-driving solutions based on the NVIDIA DRIVE platform — which includes NVIDIA DRIVE Xavier™, the world’s highest performance system-on-a-chip, as well as the NVIDIA DRIVE OS (operating system) and DRIVE AV (autonomous vehicle) software stacks.
The solutions will utilize Continental’s experience in system and software engineering for ASIL-D rated safety — the highest rating level — and integrate a range of Continental sensor technologies, including radar, camera and high-resolution 3D lidar.
“The vehicle of the future will be a sensing, planning and acting computer on wheels. The complexity of autonomous driving requires nothing less than the full computational horsepower of an AI supercomputer,” said Dr. Elmar Degenhart, CEO of Continental. “Together with the performance and flexibility of NVIDIA’s AI self-driving solution, from the cloud to the car we will achieve new levels of safety, comfort and personalization for future vehicles.”
“We now have all the key elements in place to take AI self-driving cars from development to mass production,” said Jensen Huang, founder and CEO of NVIDIA. “Our newly arrived DRIVE Xavier processor, extensive NVIDIA DRIVE software, and cloud-to-car approach for testing, validation and functional safety, combined with Continental’s expertise and global reach, will bring autonomous cars to the world.”
As the brain of the Continental system, NVIDIA DRIVE Xavier can deliver 30 TOPS (trillion operations per second) for deep learning, while consuming only 30 watts of energy. This unprecedented level of performance is necessary to handle the massive amount of data processing that self-driving vehicles must perform. These include running deep neural networks to sense surroundings, understand the environment, localize the vehicle on an HD map, predict the behavior and position of other objects, compute vehicle dynamics, and plan a safe path forward.
Open NVIDIA DRIVE Platform Enables Collaboration
Continental and NVIDIA will initially develop highly automated driving features, including 360-degree perception and automatic lane changing on highways, plus the ability to merge in traffic. In addition, the system will integrate HD maps, enabling vehicles to localize themselves and provide mapping updates.
Continental’s expertise in advanced driver assistance systems integrates multi-function cameras, fish-eye cameras with surround view, short- and long-range radar sensors, high-resolution 3D lidar technologies, as well as central control units for assisted and automated driving. In 2016, Continental’s sales of advanced driver assistance systems exceeded €1.2 billion and the company expects it to grow to €2.5 billion by 2020.
“Partnering with NVIDIA will enable Continental to advance beyond its leadership position in advanced driver assistance systems, delivering a scalable range of automated and autonomous vehicle systems, from today’s NCAP requirements up to Level 5,” said Luca De Ambroggi, research and analyst director at IHS Markit.
Shares of Nvidia are currently trading at $225.40, down $8.12 or -3.48%. NVDA has a 1-year high of $249.27 and a 1-year low of $95.17. The stock’s 50-day moving average is $219.37 and its 200-day moving average is $192.55.
On the ratings front, Nvidia stock has been the subject of a number of recent research reports. In a report issued on February 1, Goldman Sachs analyst Toshiya Hari maintained a Buy rating on NVDA, with a price target of $281, which implies an upside of 24% from current levels. On the other hand, on January 23, Morgan Stanley’s Joseph Moore maintained a Hold rating on the stock.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Toshiya Hari and Joseph Moore have a yearly average return of 31.3% and 13.4% respectively. Hari has a success rate of 68% and is ranked #353 out of 4745 analysts, while Moore has a success rate of 58% and is ranked #524.
Overall, one Wall Street analyst has rated the stock a Sell, 11 have assigned a Hold, while 10 research analysts have given a Buy rating for the stock. When considering if perhaps the stock is under or overvalued, the average price target is $224.59 which is -1.1% under where the stock opened today.