Chipmaker Nvidia (NVDA) is best known for its powerful data center business, but its automotive division is quietly gaining momentum. In fact, during the second quarter of Fiscal 2026, the auto segment brought in $586 million, up 69% from the same time last year. This growth came mostly from Nvidia’s self-driving solutions, which included the launch of its new DRIVE AGX Thor chip. Interestingly, CFO Colette Kress described Thor as the most advanced autonomous vehicle computer Nvidia has ever built.
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It is worth noting that Nvidia provides what is known as a “full-stack” solution. This means that it offers both the hardware (such as the Thor chip) and software (like DriveOS) to power the self-driving features in modern cars. Thor will also support Nvidia’s DRIVE AV platform, which is already in production and is expected to improve safety, as well as create major revenue opportunities for the company.
Thanks to this momentum, CEO Jensen Huang previously stated that he expects $5 billion in revenue from the automotive segment this year, with further growth ahead. However, beyond DRIVE, Nvidia chips are also central to broader AI-powered vehicle systems. Indeed, Tesla (TSLA), for instance, uses Nvidia GPUs in its supercomputers to train its autonomous vehicles. Notably, Huang views this as part of a larger trend known as “embodied AI,” where physical machines, such as cars and robots, use AI to interact with the real world.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 35 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $212 per share implies 17.6% upside potential.
