Is NVIDIA’s Automotive Business Losing Its Wheels?

Is NVIDIA’s Automotive Business Losing Its Wheels?

There has been a great deal of hype over how NVIDIA (NASDAQ: NVDA) has been one of the pioneers in the self-driving car space, developing cutting-edge technology and partnering with marquee automakers to make a dent in this nascent market. For instance, the graphics chip specialist's supercomputer already powers all of Tesla's vehicles, and it could find its way into more cars thanks to its huge ecosystem of 225 partners.

But NVIDIA's automotive relationships haven't led to any major financial gains. Last quarter, the company pulled in $144 million in revenue from its automotive business, up just 13% from the prior-year period. This is just 5.4% of its total revenue, down from the 6.3% revenue contribution in the year-ago quarter.

A closer look at the revenue trends in NVIDIA's automotive business clearly indicates that it has lost momentum in recent quarters.

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Source: Fool.com