The Nvidia Corp. is still waiting to make a lot of money from self-driving cars, but Chief Executive Jensen Huang said on Thursday that it will not be slowed down by a break in self-driving tests or the slow production ramp of Tesla Inc. for the Model 3.
In In a brief interview on Thursday with MarketWatch after the chipmaker released strong earnings results, Huang said a recent break in self-driving tests on public roads had no impact on Nvidia
NVDA, + 1.70%
automotive business, and that cars should soon "go back" in public. He also refused to join Tesla
Director-General Elon Musk accuses the media of delays.
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Nvidia reported gains in the first quarter that were better than Wall Street had expected, but the Stock slipped by nearly 3% in after-hours trading, which dropped from a record high after a big high in recent weeks. The Nvidia share rose again this year by 34% compared to a 1.9% increase in the S & P 500
SPX, + 0.94%
As investors focused on the great resurgence of the gaming business and its server chips developed for artificial intelligence applications.
Nvidia's automotive business was again a laggard compared to its data center and gaming businesses, which grew 71% and 68%, respectively. The auto industry grew 4% to $ 145 million as the company moves from an infotainment focus to autonomous vehicle development, where its chips are used by automakers testing self-driving technologies. In the last quarter, it showed a sequential decline and grew less than 15% for the full year, falling short of expectations for the second quarter in a row. Auto outperformed consensus estimates of $ 137.2 million this quarter.
In March, Nvidia announced a halt in its self-driving road test after a Uber Technologies test vehicle killed a pedestrian in a collision. The news overshadowed the annual developer conference and dropped the stock, although Huang told analysts and reporters at the conference that the test ban was strictly warning if the pedestrian investigation revealed a problem outside of Uber.
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Huang said on Thursday that Nvidia sees no financial impact from the test freeze and said the company would resume the soon after that About his findings from the collision in Arizona has published.
"We are currently testing only on private roads, private routes, and in our simulators," Huang said in a brief interview to MarketWatch on Thursday afternoon. "We took a break to make sure we learned everything from the recent incident, and I think [Uber’s] public statements are pretty clear, so we took a break and we'll test again soon." Huang also said that Tesla Inc.'s slower-than-expected rollout of its Model 3 sedan production had no impact on its auto business, saying, "The volumes of Tesla are not that high, there's no material Difference in one way or another. "
When asked about Tesla
CEO Elon Musk's recent comments in a bizarre and embarrassed earnings conference call on media coverage of autonomous vehicle collisions, Huang took a much more moderate approach than the tyrant billionaire.
"All reporting is the reason why we need to invest in the future of autonomous driving," Huang said, specifically asking if he agreed with Musk's media coverage attacks. "I think it's very clear that accidents happen on the road and the best way for us to improve road safety and reduce the number of accidents is through automation – these cars will have sensory systems that suit everyone People are superior, have software that is always vigilant, and they will drive more safely than any human over time, so we need to get there as soon as possible. " Opinion: Uber Crash shows that it is at the Time to Be More Honest about the Challenges of Driverless Cars
The continued strong growth for Nvidia's gaming and server business has been priced into the stock at this time. Therefore, the big potential driver for Nvidia is the automotive business. So far, the smaller gains suggest that self-drivers may be further away than expected in any of the predictions made by Huang and others.
Huang told investors that he believes every vehicle will someday be autonomous. But for the time being, investors need to focus on gaming, data centers, and cryptocurrency, waiting for a bonus in the auto industry.