Nvidia Corporation (NVDA) has inked a deal to buy DeepMap, Inc., a private company focused on building high-definition maps to help autonomous vehicles (AV) navigate safely. Shares rose 2.3% to close at $713.01 on June 11.
Nvidia designs and manufactures computer graphics processors, chipsets, and related multimedia software for the gaming and professional markets. (See Nvidia stock analysis on TipRanks)
The transaction is subject to certain regulatory approvals and is expected to close in the third quarter of FY2021. Financial terms of the deal were not disclosed.
DeepMap’s technology will strengthen the mapping and localization abilities of NVIDIA DRIVE, the company’s autonomous vehicles development platform. The technology will enhance the precision required by an AV to navigate itself safely.
Ali Kani, the company’s vice president and general manager of Automotive said, “DeepMap is expected to extend our mapping products, help us scale worldwide map operations and expand our full self-driving expertise.”
Recently, after meeting with the company’s management, Raymond James analyst Chris Caso reiterated a Buy rating on the stock and said, “NVDA remains one of our favorite ideas based on our view the company remains in the early stages of several secular growth drivers – independent of broader cyclical trends in semis.”
Caso added, “In Gaming, the company has secured enough supply to drive sequential growth through the balance of the year… In Datacenter, we believe NVDA has more shots on goal than any other semi supplier, led by an established leadership position in accelerated computing.”
Consensus among analysts is a Strong Buy based on 26 Buys and 1 Hold. The NVDA average analyst price target stands at $730.50 and implies upside potential of 2.5% to current levels. Shares have gained 94.3% over the past year.
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