Shares of Aurora Innovation closed at $8.39 on Tuesday, up 29.08% for the day. During intra-day trading, the stock went up by as much as 51%. The cause of the price surge was the company’s partnership with Nvidia (NVDA).
Aurora Innovation is on a mission to make self-driving technology mainstream. It works on developing safe, efficient, and accessible autonomous transportation. Its self-driving platform ‘Aurora Driver’ is a comprehensive tool that integrates software, hardware, and data services. It achieves this using sensors and LiDAR technology for both passenger and transport vehicles.
The company already works with big partners including Volvo Group, Toyota, FedEx, and Uber. Nvidia is now added to the list. The long-term strategic partnership with Nvidia will help the company deploy autonomous trucks at scale. Nvidia’s DRIVE Thor system-on-a-chip will power the driverless trucks along with the DriveOS operating system. Both of these will be integrated into Aurora’s Aurora Driver platform.
The Aurora Driver platform works hand in hand with the Aurora Safety Case, a framework that helps the company acquire the required regulatory approvals. The CEO of the company, Chris Urmson, believes Nvidia’s accelerated computing solutions will not only help the company deliver the first driverless truck but will eventually lead to the deployment of thousands of trucks, effectively changing how logistics work in the country and around the world. This is what he had to say about the collaboration:
NVIDIA is the market leader in accelerated computing, and they’ll strengthen our ecosystem of partners and our ability to deliver safe and reliable driverless trucks to our customers at scale.
Despite being up 141% in a year, the stock is still over 50% below its all-time highs. With driverless vehicles becoming a possibility thanks to AI advancements, the stock still offers a good entry point for anyone who wants a piece of the autonomous transport system.
Aurora Innovation is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held AUR at the end of the third quarter which was 19 in the previous quarter. While we acknowledge the potential of AUR as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AUR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.