Nvidia CEO Jen-Hsun Huang said that sales of processors offered by the company will keep doubling each year to $1 billion annually.
Automakers try to attract more buyers by offering advanced features in their vehicles, helping Nvidia double its profits as sales of its processors keep increasing. In the following 2-3 years, automakers will introduce 30 new models which will feature Nvidia’s Tegra processor. The company will add more Japanese and US automakers to its customers list, which already includes VW and Tesla Motors.
Nvidia tries to focus more on automobiles to reduce its reliance on personal-computer graphics cards as PC sales are close to reaching the worst slump in history. High-end navigation and entertainment systems, as well as customizable instrument screens, which were only seen in expensive vehicles, will appear in cheaper models too as consumers want features which would match the utility and look of their smartphones.
“Until now, it’s been quite slow,” sain Nvidia CEO Jen-Hsun Huang. “It’s taken us about seven years to build a $100 million business. Now it’s doubling every year.”
Suji De Silva, an analyst at Topeka Capital Markets, says that Nvidia will have to keep up with offering progress as competition in tough, especially with rivals such as Qualcomm and Intel Corp.