Uber’s plan to roll out self-driving taxis powered by Nvidia technology is a reason to buy the ride-hailing stock, analysts said. The service will launch in Los Angeles and San Francisco next year, Nvidia CEO Jensen Huang said at the chipmaker’s annual developer conference , fleshing out the details of the previously announced partnership. Then, the service will expand to 28 global cities in 2028, he said. Shares of Uber jumped almost 6% in trading. Bank of America analyst Justin Post said it’s a critical time for Uber’s stock, which closed Monday about 27% below its 52-week high. While Tesla and Waymo’s autonomous vehicle expansions have created concerns that Uber may lose its dominance of the U.S. rideshare market, this announcement counters those worries. “We think a growing roster of US L4 OEM suppliers, combined with Nvidia’s L4 platform development commitment, can shift the medium-term US [autonomous vehicle] supply outlook in a more favorable direction for Uber, driving stock multiple expansion,” Post wrote in a Monday note. UBER 6M mountain UBER six-month chart. Post reiterated his buy rating on Uber, and his price target of $103, which is a nearly 38% gain from Monday’s close. Deutsche Bank said there’s reason to believe Uber can’t avert Waymo and Tesla taking market share, but Uber can dominate in the space, too. The bank reiterated its buy rating on the stock and $108 price target, representing a 45% return from Monday’s close. Analyst Benjamin Black wrote in a Tuesday note that Uber has the advantage by already having a strong and tested algorithm to run a ride-hailing service, whether by vehicles with drivers or without. Plus, many people are already used to utilizing the Uber app, meaning consumers don’t have to turn to a new service for autonomous vehicle rideshares. “By offering an immediate, turnkey pool of global demand, advanced fleet management integrations, and established regulatory relations, Uber serves as the essential commercialization layer,” Black wrote. “AV tech providers (like Nvidia) and OEMs recognize that plugging into the Uber network is the most efficient path to scaling their investments.”
This stock was the big winner from Nvidia's AI conference. Two analysts see a 30% rally from here
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