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Highlights:
- Thor Chip Delays: Mass production of Nvidia's Thor chip is now unlikely until mid-2025, deterring automakers.
- Shift to Alternatives: Chinese automakers like XPeng and NIO are prioritizing in-house chip development or alternative solutions.
- Nvidia Partnerships at Risk: Delays raise concerns over Nvidia's existing collaborations with leading EV manufacturers.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares fell in pre-market trading on Tuesday following reports of significant production delays for its advanced Thor chip, which had initially been slated for mass production this year. The setbacks have forced major automakers to reconsider their reliance on the technology, raising questions about Nvidia’s foothold in the automotive sector.
The Thor chip, designed to power autonomous driving systems and intelligent vehicle technologies, has faced repeated delays, pushing large-scale production into mid-2025. This has reportedly triggered shifts among Chinese electric vehicle manufacturers, some of whom are now focusing on alternative solutions.
XPeng, one of China’s leading EV makers, is said to be accelerating the development of its in-house self-developed intelligent driving chip, Turing. The company reportedly plans to feature the chip in a new model set to launch next year.
NIO Inc (NYSE:NIO), another major player, is also steering clear of relying solely on Nvidia’s Thor for its upcoming vehicles. Instead, NIO plans to integrate its NX9031 chip alongside Nvidia's Orin platform and Horizon Robotics solutions, signaling a diversified approach to chip sourcing.
Meanwhile, other Chinese automakers, including Zeekr, BYD, and Li Auto, had previously entered partnerships with Nvidia to use Thor chips in their next-generation vehicles. These delays now place added pressure on Nvidia to deliver on its commitments and meet automaker timelines.
Thor’s production setbacks could undermine Nvidia’s ambitions to dominate the intelligent vehicle technology market. The company had positioned Thor as a breakthrough for autonomous driving, with capabilities far surpassing its Orin chip, currently deployed in several vehicles.
Nvidia shares dipped 1.8% in early trading on Tuesday, reflecting concerns over the impact of production challenges on its automotive growth strategy. With automakers increasingly prioritizing self-developed technologies and alternative chip providers, Nvidia faces mounting pressure to resolve delays and reaffirm its position as a leading player in the automotive AI space.
The company’s partnerships with major EV manufacturers remain intact for now, but ongoing production issues could open the door for competitors and alternative solutions in a rapidly evolving sector.
