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Nvidia and Foxconn to Develop Autonomous Vehicle Platforms

Sam Boughedda
Sam Boughedda trader
Updated 4 Jan 2023

Nvidia (NASDAQ: NVDA) shares dipped Tuesday despite the announcement of a strategic partnership with Foxconn to develop automated and autonomous vehicle platforms.

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The deal will see Foxconn become a tier-one manufacturer for Nvidia, producing electronic control units based on the Nvidia DRIVE Orin for the automotive market.

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Nvidia said Foxconn-manufactured electric vehicles will include DRIVE Orin ECUs and DRIVE Hyperion sensors for “highly automated driving capabilities.”

“This strategic cooperation with NVIDIA strengthens the intelligent driving solutions Foxconn will be able to provide,” said Eric Yeh, senior director of the Software Development Center at Foxconn. “This is a well-considered partnership that leverages unique strengths on each side in the pursuit of innovative EV development and opportunities.”

Nvidia believes the partnership will allow it to further scale its efforts and meet growing demand as more automotive firms select DRIVE Orin for intelligent vehicles. In addition, they stated Foxconn will speed up its time-to-market and time-to-cost strategies.

Rishi Dhall, the vice president of automotive at Nvidia, explained that the deal will provide OEMs creating intelligent driving solutions “with a world-class supplier that can scale for volume manufacturing of the NVIDIA DRIVE Orin platform.”

“Foxconn’s decision to also use the DRIVE Hyperion sensor suite for its EVs will help accelerate their path to production without compromising safety, reliability or quality,” he added.

Nvidia closed Tuesday’s session down 2%.

In mid-December, HSBC analyst Frank Lee initiated coverage of Nvidia with a Reduce rating and $136 price target, telling investors in a research note that Nvidia’s potential in autos and artificial intelligence software is overshadowed by a shorter-term chip inventory correction and demand uncertainty.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.