WeRide (WRD) opened nearly 125% higher today after Nvidia (NVDA) revealed a sizable stake in the self-driving technology startup based out of Guangzhou, China.
The semiconductor behemoth spent about $25 million on buying 1.7 million shares of WeRide in the final quarter of 2024, according to a regulatory filing on Friday.
Year-to-date, WeRide stock is up roughly 111% at the time of writing.
What Nvidia’s Investment Means for WeRide Stock
WeRide first launched a robotaxi service in Guangzhou in 2019. Last year, it teamed up with Uber (UBER) to bring a similar service to those in the United Arab Emirates as well. The Chinese startup announced the launch of its next-gen robotaxi platform in October and has already secured notable partnerships with major automotive companies like Renault (RNLSY) and Nissan (NSANY).
WRD investors are reacting positively to the Nvidia news this morning as a mark of confidence from the AI darling itself helps further solidify its position in the autonomous vehicles (AV) market.
Additionally, the company’s robotaxis, minibuses, and freight vehicles serve a wide range of sectors, including mobility, logistics, and sanitation. That also makes owning WeRide stock an exciting proposition for 2025.
WRD to Benefit from Rapid Growth in AV Market
WeRide may be an attractive pick for those interested in gaining exposure to self-driving technology – a market that Statista forecasts will grow at a compound annualized rate of nearly 22% through the end of this decade.
Nvidia’s investment in WRD is exciting as it suggests the artificial intelligence giant sees WeRide as strongly positioned to capitalize on that growth. In its latest reported quarter, the Chinese startup saw its revenue decline on a year-over-year basis from 74.2 million yuan to 70.0 million yuan.
But investors could take comfort in the fact that, unlike many of its autonomous vehicle rivals, WeRide is already a revenue-generating company.
Analysts Are Bullish on WeRide Shares
Wall Street is in favor of investing in WeRide stock just as Nvidia did in the fourth quarter of 2024. The consensus rating on the self-driving stock currently sits at “Strong Buy.”
However, the mean target of $22 is sharply below the price at which WRD is changing hands on Friday.
While some analysts could upwardly revise their estimates for WeRide after the Nvidia news today, it may be more practical to wait for at least some pullback before loading up on shares of this robotaxi startup.
