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Nvidia (Nasdaq: NVDA | NVDA Price Prediction) wants to be a robotaxi driver when it grows up.
Last night, the AI semiconductor chip leader announced it wants to use its “Drive AGX Thor” chips and “Drive AV” autonomous vehicle software to enable Level 4 autonomous driving in robotaxi fleets. (Level 4 autonomy encompasses entirely autonomous driving by the car, without human assistance, within pre-determined areas). Nvidia expects its tech to be ready for widescale deployment in 2027. Mercedes-Benz plans to unveil a robotaxi powered by Nvidia tech later this year.
Nvidia stock is up more than 1% premarket on the news, and the stock’s gains (Nvidia is an S&P 500 component company) are helping to offset declines elsewhere within the index. The Vanguard S&P 500 ETF (NYSEMKT: VOO) is currently down 0.1% premarket.
Wall Street reacts
Responding in part to this news, Wedbush analyst Daniel Ives called Nvidia stock (and other AI plays such as Microsoft (Nasdaq: MSFT) and Oracle (Nasdaq: ORCL), too) “table-pounder opportunities” for investors in the New Year.
Speaking on CNBC last night, Ives observed: “Investors are kind of yawning at what Nvidia stock is doing right here. And I think we sit here six to nine months from now, I think it’s a table-pounder opportunity to own Nvidia, to own Microsoft and to obviously own names like Oracle as well … Investors are underestimating what the demand is going to look like for Nvidia … 2026, I see as a golden year for Microsoft.”
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