Chinese Electric Vehicle (EV) maker NIO ($NYSE:NIO) partners with NVIDIA ($NASDAQ:NVDA) to incorporate a chip for their flagship sedan. The stock prices for both companies may be poised for a rally this week.

In a recent press release,  William Li, Founder, Chairman and CEO of NIO said that the cooperation of NIO and NVIDIA will “accelerate the development of autonomous driving on smart vehicles.”

 

NIO ET7 Is Powered By An Adam Supercomputer

NIO has selected NVIDIA Orin which is the world’s highest-performance AV and robotics processor for their EV’s supercomputer dubbed Adam.

This chip will be featured in their flagship ET7 sedan which claims to accelerate the vehicle from zero to 100km in only 3.9 seconds.

 

Stock Rally Speculations From Different Perspectives

For NIO, the stock price already shown signs of break out before the announcement came out so it is possible that it can aggressively drive to higher prices once the bell rings in Wall Street this week.

 

$NIO – Quick targets for profit taking spotted at around 67-70 assuming you entered at 50

 

$NIO – If 70 will break this week, a move up to the 100+ levels is possible

 

Expect NIO to hit at least the 70 levels if you’re looking for a quick trade this week. A long term picture for NIO suggests that it can reach 200 to 300.

NVIDIA still has its long-term uptrend intact despite the sideways trend that it has been showing in the past couple of months. The recent partnership with NIO could also trigger a quick rally this week.

 

$NVDA – Potential short term target at 600

 

$NVDA – 900 as a next target is possible if 600 breaks

 

NVIDIA’s profit taking target is estimated to be at 525 to 900 assuming that you bought at its 300 resistance level before it broke out.

With this new partnership between NVIDIA and NIO, it looks like they could become a worthy competition for Tesla ($NASDAQ:TSLA) when it comes to automated driving.

 

Tesla’s stock price steadily climbs to 900 and possibly beyond if the market participants continue to be euphoric.

 

It’s going to be an exciting trading week once again with this breaking news. Let’s see where these companies will take investors moving forward.

 

Featured image by NIO/YouTube Screenshot