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Nvidia Supplies Chips For Autonomous Truck Company TuSimple

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 5 Jan 2022
Key points

  • Nvidia enters new partnership with autonomous commercial truck company TuSimple
  • The computing chips will power sensor perception, vehicle operation, and critical AI expertise
  • With commercial fleets ready for production in 2024, how will the company fare in the coming years of competition?

If you’re an investor, you’ve probably come across the name Nvidia (NASDAQ: NVDA); more than likely on a regular basis. The tech company has come into full force since the widespread growth of technological adaptation; supplying state-of-the-art computing chips to a range of future-thinking markets. 

TuSimple (NASDAQ: TSP), manufacturers of autonomous commercial trucks, might be slightly lesser-known. In a world of EVs, NEV’s, automation, and advanced robotics; it’s often difficult to keep up with the stocks ticking away on the sideline – but TuSimple, like the plethora of emerging techno-centric vehicles, boasts serious potential for the upcoming shift in autonomy. 

Nvidia’s chips will power sensor perception and vehicle operation, providing cutting-edge AI expertise from its Drive Orin hardware – a chip designed specifically for autonomous driving implementation. 

If you’re not familiar with TuSimple, you’re not missing out on the next Tesla just yet. With EVs flooding the current automobile narrative with anticipated company’s set to release models in the coming year; autonomous vehicles are following closely behind. Production of TuSimple’s commercial trucks aren’t expected to launch until 2024; hence why stock has moved predominantly sideways after the initial IPO surge back in May 2021. 

Cheng Lu, TuSimple CEO, hopes the new Nvidia chips will improve production efficiency, stating: “We believe this move provides us a significant competitive advantage in speeding time to market “

But it’s rare to find an emerging market absent of competition; popular chipmakers like Qualcomm, Intel, NXP, and others are all turning their heads towards controller chips for the automotive industry – so how will Nvidia cope as the market becomes increasingly saturated? NVDA stock is currently up 0.68% in Tuesday's premarket trading.

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Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.