Chipmaker Nvidia (NVDA) is moving forward with its autonomous driving plans through its partnership with carmaker Mercedes-Benz (MBGAF) and ride-hailing platform Uber (UBER). More specifically, the firms are launching robotaxi services using Mercedes’ S-Class vehicles. This move is part of Nvidia’s strategy to provide the core technology for self-driving systems rather than build the cars itself. As a result, CEO Jensen Huang said that the goal is to create a global platform that makes autonomous driving widely available.
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This move follows Nvidia’s CES presentation weeks earlier, where Huang highlighted Alpamayo, an open-source AI model that is designed to speed up Level 4 self-driving development. Interestingly, Nvidia’s broader toolkit includes AI training chips, in-car processors, and simulation software that are all meant to lower costs and accelerate progress for automakers. In addition, Mercedes’ upcoming CLA is expected to be the first car to use Nvidia’s full autonomy stack, with deliveries starting in early 2026.
Importantly, this strategy contrasts sharply with Tesla’s (TSLA) approach. In fact, Tesla builds its system end-to-end and relies only on cameras, while most of the industry, including Nvidia’s partners, uses multiple sensors like lidar and radar. Nevertheless, for now, both companies agree that fully driverless cars at scale are still years away.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $264.09 per share implies 38.7% upside potential.
