Nvidia's automotive revenue projected to reach $5 billion

Nvidia is building its automotive business as a new source of growth. The company recently reported $1.7 billion in automotive revenue for fiscal 2025, a 5% increase from the previous year. In the last quarter of the year, revenue more than doubled compared to the same quarter last year. Nvidia expects automotive revenue to reach $5 billion in fiscal 2026. The company has partnered with major players in the automotive industry, which will help drive this growth. For example, Toyota plans to use Nvidia’s technology in its next generation of vehicles. Aurora and Continental are also utilizing Nvidia’s computer system for self-driving trucks. Samsung is partnering with Nvidia for autonomous driving systems and factory optimization. Nvidia sees a potential opportunity worth $300 billion in the automotive market, which is significant. This estimate exceeds the $100 billion opportunity in gaming and is equal to the $300 billion potential in its graphics chips. Analysts believe Nvidia will continue to grow, partly due to its strong position in AI and data center graphics cards. Nvidia remains a leading player in technology. Investors are encouraged to consider buying Nvidia stock now, as it offers good value and growth potential at 26 times forward earnings.