Uber And Nvidia Vs. Tesla: Who Will Win The Autonomous Race?

January 10, 2025 10:03:19 am

Source: SeekingAlpha

2025-01-10 10:03:19 ET

Summary

Uber Technologies, Inc. and Nvidia Corporation's partnership leverages Nvidia's advanced AI technology and Uber's vast ride data to accelerate autonomous driving, positioning Uber as a strong contender against Tesla.
Despite recent stock underperformance, Uber's dominant market share and undervaluation make it a compelling investment, with a PEG ratio suggesting significant upside potential.
Uber's strategic partnerships and scalable platform ensure it plays a crucial role in the future of autonomous ride-hailing, regardless of who develops the technology first.
With a potential $1 trillion revenue from a $5 trillion autonomous ride-hailing market, Uber's current valuation is unreasonably cheap, warranting a Strong Buy rating.

Thesis Summary

Uber Technologies, Inc. ( UBER ) and Nvidia Corporation ( NVDA ) have just established a partnership to work together on autonomous driving. While this is not a unique partnership, Nvidia unveiled a few of these at CES, I do think this partnership is unique.

Nvidia has the most advanced technology available, both in terms of hardware and software, while UBER has the largest pool of real-life ride data....