Nvidia Corp. aims for auto Growth amid Chip Shortage

Chipmaker Nvidia Corp. predicts a turning point in car sales later this year, suggesting that the surge in demand for car automation outweighs the short-term challenges posed by global chip shortages and supply chain disruptions. 

The company says that the pipeline of the deals with auto companies has jumped by more than a third within a year to $11 billion, covering business that should be booked over the next six years. The automotive division of the company reported sales of $125million in its most recent fiscal quarter.

Nvidia is one of the leading makers of graphics chips and supplies hardware to run infotainment systems in cars. The company now is increasingly betting on software and chips that underpin the sophisticated driver-assistance system.

In recent months, chipmakers have become more enthusiastic about selling to the auto industry, as companies from electric carmaker Tesla Inc. to longer-established companies like Ford Motor Co. and General Motors Co. added chip-intensive features to their vehicles.

The auto business is not the only lane where Nvidia is chasing sales opportunities. The company is best known for graphics-processing chips prized by video gamers has built a new market for itself by catering to artificial intelligence calculations and crypto mining.