Aurora Innovation (AUR) stock rocketed higher today after the autonomous vehicle company announced a new long-term collaboration with Nvidia (NVDA). This collaboration brings Nvidia’s DRIVE Thor platform and DriveOS operating system to Aurora Innovation’s Aurora Driver system. That builds on its self-driving platform by powering it with Nvidia’s artificial intelligence (AI) technology.
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Aurora Innovation and Nvidia’s collaboration includes German manufacturing company Continental (CTTAY). It will handle the creation of the new autonomous system, allowing it to be added to self-driving trucks powered by Aurora Innovation’s technology on a massive scale.
What This Means for AUR Stock
Teaming up with Nvidia is a huge opportunity for Aurora Innovation and investors are taking note. The stock is rallying 35.54% as of this writing with more than 69 million shares traded. That builds on its 52-week gain of 158.33% and three-month daily average trading volume of 10.7 million units.
While investors are excited about today’s news, there are cons to consider. That includes the packed nature of the self-driving market. Many companies are already tackling this sector, leaving little room for competition. AJ Bell analyst Danni Hewson warns Aurora Innovation may need “a massive amount of investment” to succeed.
As for NVDA and CTTAY, neither stock performed as well as AUR today. NVDA stock is down 5.29% while CTTAY shares have fallen 0.15% this afternoon.
Is AUR Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Aurora Innovation is Hold based on two Buy, three Hold, and one Sell ratings over the last three months. With that comes an average price target of $5.70, a high of $10, and a low of $2.50. This represents a potential 35.52% downside for AUR shares.
