Uber Technologies Inc. (NYSE:UBER), shares rose as much as 3,2% in pre-market hours, after the company announced a partnership with Nvidia Corp. (NASDAQ:NVDA), to accelerate the development of autonomous driving technology.
This collaboration will help Uber achieve its ambition to stay at the forefront of innovative technology in the competitive autonomous vehicles (AV) market.
In a news release, Uber Chief Executive Dara Kosrowshahi stated that “Generative AI” will power the future mobility. This requires both rich data as well as very powerful computing.
He added, “We are confident that by working with NVIDIA we can help supercharge timelines for safe and scalable solutions for autonomous driving for the industry.”
The partnership leverages Nvidia Cosmos platform and DGX Cloud in conjunction with data from millions Uber’s daily trips to enhance AI model creation.
Nvidia Cosmos is a powerful tool for developing physical AI systems, such as autonomous vehicles, because it minimizes costs and resources.
The DGX Cloud is a managed AI platform with high performance that simplifies model creation in multiple cloud environments.
Norm Marks expressed his excitement about the collaboration. He said that Uber was among the first mobility leaders who adopted these platforms.
The partnership will provide advanced tools and platforms to the AV ecosystem. Further details will be released later this year.
Uber makes strides in AV, but investors remain sceptical
Uber’s partnership is with Nvidia aligns to its broader strategy, which is to collaborate with autonomous vehicle (AV), rather than owning or operating its own AV division.
The company sold its AV unit at the end of 2020 and chose to position itself instead as a platform for AV innovators.
This approach has led us to form strategic alliances with leading industry players like Waymo, Google’s self-driving vehicle division.
Uber has already integrated Waymo vehicles in its platform in Phoenix, and plans to extend this partnership to Austin and Atlanta by next year.
The company has also recently added robotaxis to the app in Abu Dhabi, through a partnership with Chinese mobility firm WeRide.
Investor sentiment towards Uber’s AV Strategy remains mixed despite these initiatives.
Market volatility has been created by concerns about the broader implications that AV adoption will have on Uber’s business models.
Uber shares fell after Waymo announced that it was expanding to Miami, using its own app instead of partnering with Uber.
Uber’s stock has also been affected by Tesla (TSLA) updates on its robotaxi service in the last six months.
Uber’s stock has been hit by a downturn in recent months. The stock is down 25% from its October peak of $87.
This reflects the broader market’s skepticism regarding how Uber will navigate a competitive and disruptive AV environment.
Investors are cautious about Uber’s financial performance and ride-hailing dominance in the long term.
Uber Stock 2025 rally
Uber has started 2025 strong despite investor skepticism. The stock is up 10% this month, regaining the 21-day moving mean.
Uber could test its 50-day moving-average if it makes further gains on Tuesday.
According to IBD Stock Checkup, Uber’s IBD Composite rating is 69 out a maximum of 99.
IBD’s Composite rating combines five proprietary ratings into a single, easy-to-use score.
The best growth stocks are those with a Composite rating of 90 or higher.
This post Uber stock gains from AV partnership with Nvidia – here’s what you should know as an investor may be modified based on updates.
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