Nvidia Makes a Massive Bet on a Shocking Automaker

Nvidia's (ticker: NVDA) annual GPU Technology Conference (GTC), a 15-year tradition, just wrapped up.

Originally, the conference was all about GPU (graphics processing unit) chips and their application in places like video games and animation.

Today? It’s all about artificial intelligence!

It’s a big event for Nvidia as it showcases some of the future applications of their high-demand semiconductor chips.

Even Jim Cramer, the investing guru on CNBC, was onsite at the GTC!

But here’s the thing…I don’t really care about Nvidia.

If you bought Nvidia 5+ years ago you are a very happy investor.

The rest of us, like me, missed the boat!

But there are plenty of other ships in the sea waiting to be boarded and Nvidia can help us find them.

When investing I sometimes look for companies that are adjacent to large, profitable businesses.

Nvidia’s rising tide can lift other boats…sorry, I will stop with the boat metaphors.

Anyways, during the conference Nvidia announced a partnership with an automaker to use their chips to make the next generation of vehicles.

I know what you are thinking.

“Elon Musk was brought on stage wearing his “tech support” shirt to talk about a new partnership between Tesla (ticker: TSLA) and Nvidia.”

But it wasn’t Elon Musk and it wasn’t Tesla.

“Then it had to be an upstart automaker like Rivian (ticker: RVAN) or Lucid Motors (ticker: LCID), right?”

Wrong again.

Nvidia announced a new partnership with General Motors (ticker: GM).

Wait…WHAT!?!

When I think of innovation in automaking, GM is pretty far down the list.

But what they are planning is very cool, and potentially super profitable.

You can read the press release here.

Nvidia and GM are going to collaborate on designing new chips for GM vehicles.

That makes sense! Our vehicles need better chips to handle more technologically advanced features.

These chips could be the start of driverless cars and GM might be crossing the finish line ahead of everyone else!

But that isn’t all.

GM and Nvidia are also going to partner in making virtual factories to test out new automotive manufacturing processes.

That sounds a little confusing, but it’s ingenious when you think about it.

Manufacturers, especially automakers, need to spend a HUGE amount of money building their factories.

GM uses a lot of time planning on how to build those factories. They have to…if they mess up it’s a massive waste of money!

Virtual factories could be built in the blink of an eye to test out how the manufacturing process is going to work.

It will save GM a boatload of money (last one, I promise).

The virtual factories can also be used to train robots for future stages in manufacturing.

All of this sounds really interesting to me and is a unique opportunity for GM.

The announcement got a lot of press..for Nvidia that is.

No one was talking about how this was going to impact GM!

That’s a big mistake. This partnership is huge for GM!

Think of how much money GM will make if they are the first automaker with an AI powered self-driving car!

Are you excited about this partnership between Nvidia and GM? Will this push GM to the front of the line in the race for self-driving cars?

Send me a quick note!