These actions are shaping the future of technology

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AAs an investor, knowing the past can help you understand the future. It may seem counterintuitive, but history tends to repeat itself in subtle ways. For example, innovative technologies have changed the world on dozens of different occasions, acting as catalysts for productivity and economic growth.

In the last century alone, personal computers, the Internet and mobile devices have been inflection points that have completely changed the way we live. Looking ahead, I think there are several booming technologies that have the same potential, but nothing more than artificial intelligence (AI). In fact, research from McKinsey & Co. suggests that AI could increase economic output by $ 13 trillion by 2030.

Based on this idea, let’s take a look at two companies that are shaping the future of autonomous technology.

Image source: Getty Images

1. Nvidia

Nvidia (NASDAQ: NVDA) is a chip maker specializing in accelerated computing. Its flagship product is the Graphics Processing Unit (GPU), a chip capable of performing thousands of calculations simultaneously. When Nvidia invented the GPU in 1999, it revolutionized the gaming industry with ultra-realistic computer graphics. But GPUs have since become a benchmark in the data center, where they are used to accelerate intensive workloads such as scientific computing, data analysis, and artificial intelligence.

In fact, Nvidia has over 90% market share in the supercomputer accelerator industry and has consistently set records at MLPerf benchmarks, a standardized testing event that compares the performance of AI technologies. More recently, Nvidia set records in inference testing in September, the part of AI where computers are used to make decisions and predictions.

Beyond peak performance, Nvidia also benefits from a broad product portfolio. It acquired Mellanox in 2020, adding high performance networks to its repertoire. The company has diversified into software over time and now offers a range of frameworks that help developers build AI applications, such as Merlin for recommender systems, Metropolis for smart cities, and Isaac for smart cities. autonomous machines.

Unsurprisingly, Nvidia has seen strong demand in its gaming and data center businesses, and this has translated into strong financial performance over the past three years.

Metric

Q2 2020 (TTM)

Q2 2022 (TTM)

TCCA

Returned

$ 10.2 billion

$ 21.9 billion

45%

Free movement of capital

$ 2.4 billion

$ 6.7 billion

65%

Data source: YCharts. TTM = 12 rolling months. CAGR = compound annual growth rate.

For the future, Nvidia is well placed to grow his company. Management assesses the market opportunity for its data centers at $ 100 billion by 2024. In addition, technologies such as self-driving cars, smart cities and autonomous robots will only become more common in the future. , and Nvidia’s platform brings these technologies to life.

2. Tesla

You’re here (NASDAQ: TSLA) is without a doubt one of the most controversial stocks on the market, but it is also one of the most innovative companies on the planet. In 2008, Tesla produced its first electric vehicle (EV), when prestigious German automakers scoffed at the idea. Turns out Tesla saw the writing on the wall before the rest of the industry.

Since then, Tesla has turned its pioneering status into a more substantial competitive advantage. In 2017, it launched the 2170 battery cell, the cheapest and most energy dense cell on the planet, according to CEO Elon Musk.

Why is this important? Tesla pays significantly less to build batteries (the most expensive part of an EV) than other car makers. And the energy density of 2,170 cells means that Tesla’s four different vehicles – the S, X, Y, and 3 models – are the top four EVs for range.

Unsurprisingly, strong demand has helped Tesla maintain its leadership position. In the first half of 2021, the company captured 15.2% market share, selling 386,100 vehicles. In turn, Tesla has posted impressive financial results over the past two years.

Metric

Q2 2019 (TTM)

Q2 2021 (TTM)

TCCA

Returned

$ 24.9 billion

$ 41.9

30%

Free movement of capital

$ 1.4 billion

$ 2.6 billion

36%

Data source: YCharts. TTM = 12 rolling months. CAGR = compound annual growth rate.

However, I think Tesla’s best days are yet to come. With over a million autopilot vehicles on the road, the company had collected over 3 billion kilometers of actual driving data as of February 2020, far more than any other automaker. Some estimates even put that figure at over 5 billion miles today.

Then, a few months ago, the management launched the D1 chip, the semiconductor which will power Tesla’s Dojo supercomputer. The D1 chip is tailor-made for AI and will make Dojo the most powerful AI training machine in the world. In short, Tesla has more data and better technology than its peers.

To that end, Musk said, “In about three years, we’re confident we’ll be able to create a very compelling $ 25,000 electric vehicle that will also be fully self-sufficient.” He made that statement about a year ago, and if you take it at face value Tesla is much closer to producing a self-driving car than any other automaker.

Finally, Tesla recently launched an auto insurance product in Texas, where it will rely on its AI-based “safety score” to determine premium prices. Then again, the company’s connected car fleet and its AI prowess opened up a new market opportunity. This is why this company is shaping the future of technology.

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Trevor Jennevine owns shares of Nvidia and Tesla. The Motley Fool owns shares and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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