NVDA: self driving fears


Last Tuesday during Jensen Hwang’s keynote address, NVDA stock started dropping. I had some friends messaging me asking what was happening. I was at a meeting at work so I could not look into it. Later that nighted. I watched the keynote. I didn’t think that Hwang didn’t say anything damaging during the keynote. However, during the presentation, someone reported report that NVDA was suspending its fleet of self-driving cars. Well, later I learned that they have 5 cars in this fleet. This is really hilarious. The stock drops 10% because NVDA stops using its 5 cars? Well, ok, there were general fears that self-driving car development would slow and implementations might be delayed. It was also later reported that Uber, the company that had the fatality, was not using NVDA’s system but is developing its own. The article above claims that Uber’s sensors have a blind spot that may lead the car to be able to not always detect pedestrians. The article postulates that NVDA’s share price will rebound as investors realize that the real facts in no way delay much of anything. Once investors digest everything that CEO Hwang announced on Tuesday, I bet [and I did make a substantial bet on that [ast week] NVDA’s shares will soon reach all-time highs. I may be right about that or I may be wrong. I’m confident that I will eventually be right. We will see…



I was lucky enough to it have a work meeting until a call at 1:30 on Tuesday, but here were my real-time observations. The share price drop was quite extreme…and even with a few days of reflection, the cause was clearly the report about the self-driving. The timing of the report was within 5 minutes of the scheduled start of the keynote…maybe sometime right between 11:55 and 11:58.


Here is another post where I note my prediction of just how ironic the timing may someday seem of that particular drop happening as Huang was on stage announcing all the continuing breakthroughs.

Looks like that one was actually a response to you, and had a link to this post about the overall things that all factored in to exacerbating the drop…which I’ll keep linked here for anyone else, since I already pasted it here.


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Uber does not use Nvidia chips but markets apparently lumped them all together.

I think the market assumed that Nvidia was suspending testing of all Nvidia partners, not just its own 5 cars . In any case it will be only short time until the pedestrian death is figured out, data comes from onboard machines not from humans.

I added more NVDA too

Correction: UBER does use NVDA GPUs, but they do not use NVDA’s autonomous driving platform. They incorporate the GPUs in their system just as they might incorporate an Intel CPU (which they probably also use). Nvidia has as much culpability here as Intel does. That is, NONE.

It appears that UBER for some reason, was using fewer sensors than even a Tesla uses. That sounds absurd, but that is what some of the reporting is pointing to.


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“Uber does not use Nvidia chips but markets apparently lumped them all together.”

I believe UBER used NVDA chips but not NVDA’s autonomous driving platform (DRIVE). At least that what he said in his Cramer interview. That’s why the over-reaction imo.