Nvidia Corp. (NVDA) - Get Report shares could open at a fresh record high Monday after the chipmaker added Volkswagen AG (VLKAY) and Uber Technologies Inc. to its growing list of carmaking partnerships keen on using its artificial intelligence technology.
Nvidia announced the new tie-ups at the Consumer Electronics Show in Las Vegas late Sunday, adding to previous partnerships with Tesla Inc. (TSLA) - Get Report and China's Baidu Inc. (BIDU) - Get Report . Volkswagen, the world's No. 2 carmaker, said Nvidia was the world leader in AI technology that is "revolutionizing" the industry.
"In just a few years, every new vehicle will be expected to have AI assistants for voice, gesture and facial recognition as well as augmented reality," said Nvdia CEO Jensen Huang. "Volkswagen's work with NVIDIA DRIVE IX technology will make that a reality. Together, we are building a new generation of cars that are safer, more enjoyable to ride in than anything that has come before, and accessible to everyone."
Nvidia shares rose 2.25% in premarket trading Monday, indicating a record opening bell price of $220.24 each. The moves could take Nvidia's three-month gain past 22% and its 52-week advance over 105%.
Nvidia was also the best-performing chip stock in the U.S market last year, following an S&P 500-leading gain of 223.85%.
Last week, analysts at Goldman Sachs reiterated their "buy" rating on the Santa Clara, Calif.-based group and maintained its $228 price target, a move TheStreet contributor Jonas Elmerraji said reflects the fact that Nividia is "positioned to hand investors big returns for yet another calendar year."
"Without a doubt, Nvidia is enjoying some tailwinds across multiple product lines right now," Elmerraji said. "The firm's GPUs, historically used for accelerating video game graphics, are being used in a variety of hot applications right now, including cryptocurrency mining, machine learning, and augmented and virtual reality."
"Those applications should continue to ramp up demand for Nvidia's high-end chips," he added."
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