NIO And NVIDIA Join Forces — How Far Can Their Stock Prices Go?
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.
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.
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.
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