Game lovers are likely to be familiar with Nvidia’s graphics processors. The US tech firm continues to derive the bulk of its revenue from gaming-related semiconductors, but there is now a new growth segment — chips for artificial intelligence (AI).
Business related to deep learning, a core part of an artificially intelligent machine, is one key factor behind Nvidia’s impressive first-quarter results.
The advanced machine learning function is being applied to numerous areas, including speech recognition, video search, face detection and self-driving vehicles.
Nvidia is already working closely with automaker Tesla in development of driverless car technology, which deploys AI to detect pedestrians and track lanes and to recognize traffic signs.
Jen-Hsun Huang, Nvidia’s president and CEO, told the media that his company expects to see “a lot more global penetration” in the automotive market.
Almost all major car brands are investing or planning to invest heavily in automated cars. This could be a huge market for Nvidia, not to mention the fact that AI applications are growing by the day in other fields as well.
The AI boom is just getting started and the best is yet to come.
Nvidia has rewarded investors with a year to date return in excess of 31 percent.
As the company seeks to boost sales of AI-related chips, it is well positioned to rise to the next level.
Looking at the industry overall, as AI generates more buzz in the months ahead, it will become a prominent investment theme.
That, however, does not mean that investors will have an easy ride.
Japan’s Softbank Corporation, which is known for its humanoid “Pepper” robots, has seen its shares retrace significantly after a rally in previous years.
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