Nvidia's automotive and robotics segment has reached a significant milestone, reporting a remarkable 103% increase in revenue year-on-year, totaling $570 million in the fourth quarter of the 2025 fiscal year. This surge is fueled by the rising demand for advanced driver-assist technologies, positioning Nvidia as a key player in the evolving automotive landscape. For the fiscal year, this segment achieved $1.69 billion in revenue, surpassing the $1 billion mark for the second consecutive year.
Currently, Nvidia's automotive and robotics unit accounts for 1.45% of the company's total revenue. Despite its relatively small share, industry experts believe this segment has tremendous growth potential. Nvidia's Chief Financial Officer highlighted that the latest revenue increase stemmed from robust sales of the company's self-driving platforms, which are rapidly gaining traction in the market.
The automotive sector is undergoing a transformation, with Nvidia predicting that "every single one" of the 1 billion cars on the roads today will eventually become robotic vehicles. These cars will be equipped to gather data, which Nvidia's AI systems can refine and enhance. This vision aligns with the increasing adoption of advanced driving systems, notably L2+ technologies. Brady Wang, a semiconductor analyst at Counterpoint Research, noted that the "increasing adoption of L2+ and more advanced systems" is expected to continue driving growth in this segment.
Several Chinese electric vehicle manufacturers, including BYD, Nio, and Zeekr, have adopted Nvidia's driver-assist chip systems, further underscoring the demand for the company's technology. Gene Munster, managing partner at Deepwater Asset Management, remarked that the automotive and robotics segment is "getting ready to take off," with estimates suggesting that around 15 companies are currently developing humanoid robots. This surge in interest could significantly increase demand for Nvidia's chips.
Experts suggest that Nvidia's automotive and robotics segment has the potential to evolve into a billion-dollar business. While it currently represents a minor fraction of Nvidia's overall revenue, its growth trajectory appears promising. Munster emphasized that while the segment is small now, "they can be a much bigger part of revenue going forward."
Leave a Reply