On Tuesday, January 28th, 2025, a sign at the Nvidia Corp. office in Taipei, Taiwan. Photographer: Long Xu/Bloomberg via Getty Images
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US chipmaker Nvidia’s automotive segment revenues have more than doubled in the last quarter, recording strong demand for driver-assisted software.
The company’s biggest revenue stream is chip systems that power artificial intelligence, but Nvidia predicts that power driver assist technology could become the next “billion dollar” business.
Nvidia’s Automotive and Robots segment revenues rose 103% year-on-year to $570 million in the fourth quarter of fiscal year 2025. This brings revenues for the fiscal year to $16.9 billion, exceeding the second year’s $1 billion.
According to the company’s CFO, the latest increase in revenue was due to sales of Nvidia’s “autonomous driving platform.”
“This growth highlights an increase in exposure to power delivery to ADA, autonomous vehicles and robotics through drive platforms and related technologies,” said Brady Wang, semiconductor analyst at CounterPoint Research, in an email.
CEO Jensen Huang said in Nvidia’s revenue that, according to the Factset transcript, the company will call the AI system supported by Nvidia will become a robotic vehicle that collects data that could potentially be refined.
With investments in self-driving cars such as Gene Munster, managing partners at Deepwater Asset Management, Waymo and Tesla, cars and robotics are likely “preparing to take off” in an email. Munster also estimates that around 15 companies have built humanoid robots, which could lead to increased demand for Nvidia chips.
“The performance of that segment is a key story under the fold that is less attention-grabbing because it’s small,” he added.
Automotive and robotics units currently account for 1.45% of NVIDIA’s total revenue.
Counterpoint’s Wang expects this growth to continue with Nvidia’s “increasing adoption of L2+ and more advanced systems.”
Several Chinese electric vehicle companies, including BYD, NIO and Zeekr, use Nvidia’s driver assist chip system.
“In addition to autonomous driving, we also expect robotics and physical AI to experience hype,” Wang adds, “The real applications will continue over the next few years to sustain long-term growth in this sector.”
