Nvidia’s automotive revenue is quietly surging on explosive demand for AI tech

Nvidia $NVDA ( ▲ 2.8% ) is emerging as the go-to supplier for the chips and software powering the auto industry’s shift to AI—fueling everything from self-driving systems to smart factory automation.

The details: The global tech company’s auto revenue over the past few quarters hasn’t just increased—it has literally catapulted, further highlighting why Nvidia has become such an integral part of the business.

• For the first quarter of 2025, Nvidia’s automotive revenue climbed to $567 million, an increase of 72% from Q1 2024.

• In the fourth quarter, the AI-based tech company’s auto revenue nearly doubled from a year ago.

• Nvidia’s automotive vertical revenue is expected to grow to $5 billion in fiscal year 2026, according to company officials. 

The driving factors? Hardware and software systems used for autonomous driving and next-generation vehicles. Nvidia’s big play in the auto sector is also being driven by the use of its AI technology to streamline processes on the assembly line for companies like GM and Hyundai.  

Between the lines: Nvidia growth in the auto sector is also indicative of a bigger trend—the wider application of AI throughout the industry.

• The automotive AI hardware market was valued at approximately $15 billion and is projected to surge to $40 billion by 2034, growing at a compound annual growth rate (CAGR) of 10.5%.

• Three out of 10 automakers surveyed by the industrial sourcing platform, Thomas, indicated that AI innovation is the one that they are most optimistic about in 2025—with three out of four manufacturing companies indicating they are investing heavily into AI.

Bottom line: Nvidia is quickly becoming a key power player in the auto industry. And with projections that the tech company will hit $5 billion in auto revenue by fiscal 2026, its integration into both vehicle design and manufacturing signals a much larger AI-driven transformation underway across the sector.

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