Nvidia reported its second-quarter automotive revenue from in-car compute sales was $586 million. That was a small fraction of Nvidia's overall Q2 take, but up 69% compared to a year ago, and primarily driven by self-driving solutions. It's an important automotive metric as Tesla goes all-in on fully autonomous self-driving, and many other automakers in the U.S. and China look to bolster their autonomous driving technology. TSLA shares angled lower during Thursday's stock market and continued to fall Friday.
Nvidia earnings beat views late Wednesday, though data center revenue may have missed some forecasts. The AI chip giant guided higher for current-quarter revenue, but only slightly. However, when it comes to autos and Tesla, the key from the Q2 conference call was comments from Nvidia CFO Colette Kress on autonomous vehicle, or AV, System-on-a-Chip (SoC) products.
"We have begun shipments of Nvidia Thor SoC, the successor to Orin. Thor's arrival coincides with the industry's accelerating shift to vision language model architecture, generative AI and higher levels of autonomy. Thor is the most successful robotics and AV computer we've ever created," Kress told analysts Wednesday.
"Our full-stack DRIVE AV software platform is now in production, opening up billions to new revenue opportunities for Nvidia, while improving vehicle safety and autonomy," Kress added.
Nvidia has numerous deals with automakers including Tesla, General Motors, Volvo, Toyota, Hyundai, Mercedes-Benz, Chinese giant BYD and Rivian.
Earlier this month, Tesla CEO Elon Musk scrapped Tesla's Dojo supercomputer, which had been long touted as the in-house solution to training its autonomous driving and AI models. Musk has now shifted to relying on Nvidia and Advanced Micro Devices for compute chips along with Samsung for manufacturing for the new memory chips to be used in Tesla's humanoid robot Optimus, fully autonomous self-driving vehicles and AI data centers.
Nvidia Earnings: Stock Falls. CEO Upbeat About China Market
Tesla's plans seem to be for AI5 and AI6 chips to power the company's upcoming self-driving systems known as Hardware 5 and Hardware 6, or HW5 and HW6. The company's vehicles currently are on HW4.
Tesla Stock
TSLA dripped 3.5% to 333.86 during Friday stock market. Shares of Tesla advanced as high as 353.55 intraday before ending Thursday's stock market down 1% to 345.98. On Wednesday, Tesla stock fell 0.6%.
TSLA stock is now below a 348.98 handle buy point. The stock fell 1.8% this week. It ended Friday up 8.3% in August, its first monthly advance since May.
Tesla stock is on SwingTrader.
Jump-Start Your Investing Skills With IBD Digital
Tesla stock has a 62 Composite Rating out of a best-possible 99. The stock also has a 79 Relative Strength Rating and a 53 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Get Full Access To IBD Stock Lists And Ratings
Why This IBD Tool Simplifies The Search For Top Stocks
IBD Digital: Unlock IBD's Premium Lists, Tools And Analysis Today
How To Invest: Rules For When To Buy And Sell In Bull And Bear Markets
Futures: Alibaba News Hits AI. Why This Isn't DeepSeek 2.0.