Aurora Innovation Stock Soars After Latest Partnership Announcement
Nvidia’s CES Keynote Reveals Plans for Driverless Trucks
Aurora Innovation (AUR) stock is booming early Tuesday after the company’s latest partnership was revealed during Nvidia CEO Jensen Huang’s Consumer Electronics Show (CES) keynote on Monday. The self-driving technology firm’s stock climbed as high as 44% in pre-market trading before paring back its gains to a 40% jump.
70% Growth in 2024
Aurora stock has grown by about 70% in 2024, indicating the company’s significant progress in developing autonomous driving technology. This growth is expected to continue with the recent partnership announcement.
Partnership with Continental and Nvidia
The companies said Monday that they would work together to deploy driverless trucks powered by Nvidia’s (NVDA) DRIVE Thor chips in the coming years. The Aurora Driver, which will use a SAE level four system, will be mass-produced by Continental in 2027. Production samples are scheduled to arrive in the first half of 2025.
Previous Partnerships and Milestones
Last January, Aurora told Quartz that it had more than two dozen trucks making autonomous deliveries — albeit with a driver ready to take over — in Texas through partnerships with Uber (UBER) and FedEx (FDX). Initially, Aurora planned a commercial launch by the end of 2024 but pushed back that debut to improve its software. On Monday, the company confirmed it is targeting an April launch, beginning with a single truck monitored remotely on a route from Dallas to Houston.
Chris Urmson’s Statement
Aurora co-founder and CEO Chris Urmson said in a statement, "Delivering one driverless truck will be monumental. Deploying thousands will change the way we live." He added that Nvidia’s chips will boost Aurora’s ability to deliver ‘safe and reliable’ trucks at scale.
Nvidia’s Expanding Portfolio
As for Nvidia, the chipmaker has its hands in more than a few self-driving pies. The company said Monday that Toyota (TM) will use its DRIVE AGX Orin system-on-a-chip (SoC) technology for its next-generation vehicles for driving assistance.
Jensen Huang’s Keynote and Remarks
Nvidia CEO Jensen Huang highlighted the company’s growing portfolio during his keynote at CES, stating, "We’re working with just about every major car company around the world. Waymo (GOOGL), and Zoox (AMZN), and Tesla (TSLA), of course, in their data center, and BYD (BYDDY), the largest EV company in the world; JLR’s got a really cool car coming. Mercedes has a fleet of cars coming with Nvidia starting this year going to production." He also mentioned Volvo, self-driving truck startup Waabi, electric truck maker Rivian (RIVN), luxury electric vehicle maker Lucid (LCID), and China’s Xiaomi.
Potential for the Robotics Industry
Huang predicted that this will likely be the first multi-trillion dollar robotics industry, stating, "Our business if already $4 billion and, this year, probably on the runway to about $5 billion." He emphasized Nvidia’s growing dominance in the field of artificial intelligence and self-driving technology.
Nvidia Stock Performance
Nvidia stock rose almost 3% in pre-market trading, demonstrating investor confidence in the company’s expanding portfolio and partnerships. The stock saw explosive growth last year as the artificial intelligence boom went into high-gear.
Conclusion
The partnership between Aurora Innovation and Nvidia is a significant milestone for both companies, and the industry as a whole. With the growing demand for autonomous driving technology, these two companies are poised to revolutionize the way we live and work. The potential for the robotics industry is vast, and it will be interesting to see how this sector develops in the coming years.
References
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- Aurora Innovation Announces New Partnership with Uber and FedEx
- Nvidia’s DRIVE Thor Chips to Power Driverless Trucks
- The Future of Autonomous Driving: Trends and Predictions