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During the annual Consumer Electronics Show (CES) held earlier in January, startup Innoviz Technologies (INVZ) managed to steal some time in the spotlight.
Specializing in LiDAR technology, a cornerstone of autonomous vehicles, Innoviz’s breakthrough moment at CES 2025 came courtesy of a game-changing partnership with none other than chip giant Nvidia (NVDA). The company grabbed investor attention after it showcased how its state-of-the-art LiDAR software integrates effortlessly with the NVIDIA DRIVE AGX Orin platform, unlocking advanced, artificial intelligence (AI)-powered features for autonomous driving.
The excitement around Innoviz is hard to ignore. But penny stocks like Innoviz can be notoriously volatile and carry significant risks. So, with this game-changing development in play, is now the right time for investors to jump in? Let’s take a closer look to find out.
About Innoviz Stock
Israel-based Innoviz Technologies(INVZ) stands at the forefront of LiDAR innovation and is a supplier to some of the world’s most prestigious automotive manufacturers.
Presently valued at a market capitalization of roughly $34 million, shares of this LiDAR software innovator are in negative territory over the past year, posting a decline of 5%. However, the past three months tell a different story. The stock has roared back to life, delivering stunning returns of almost 120%, far outpacing the broader S&P 500 Index’s ($SPX) 1.6% gain during the same time frame.
A Closer Look At Innoviz’s Q3 Performance
Innoviz dropped its third-quarter earnings report on Nov. 13. The company’s total revenue of $4.5 million jumped an impressive 28.6% year-over-year, narrowly beating Wall Street’s estimate. While Innoviz reported a loss for the quarter, it managed to narrow the loss to $0.15 per share, improving from last year’s $0.18. This performance was slightly better than the anticipated $0.16 per share loss.
During the quarter, Innoviz reduced its cash used in operations and capital expenditures to $17.7 million, a notable improvement from $28.6 million in the same quarter last year and $21.6 million in Q2 of fiscal 2024. Moreover, as of Sept. 30, Innoviz boasted a solid liquidity position with approximately $87.7 million in cash and cash equivalents, bank deposits, marketable securities, and short-term restricted cash.
On the commercial front, Innoviz solidified its partnership with a Level 4 platform provider, supporting several original equipment manufacturers (OEM) programs and integrating nine of its LiDAR units into each autonomous vehicle.
This collaboration presents substantial revenue growth potential and opens the door for additional OEMs to join the platform. The company also revealed that it is making impressive progress in its partnership with Volkswagen Group (VWAGY) across Level 3 and Level 4 programs.
For full-year 2024, management anticipates revenue to land between $23.5 million and $25 million, up from $20.9 million recorded in 2023, highlighting the company’s expanding market presence and growing demand for its innovative LiDAR solutions. Meanwhile, analysts tracking Innoviz Technologies project the company’s loss to reduce by 28.6% year-over-year in fiscal 2024 and shrink another 38.3% in 2025.
Innoviz Turns Heads With Nvidia Partnership
On Jan. 7, shares of Innoviz took off more than 10% after the company revealed its latest technological advancements at CES 2025 in collaboration with AI king Nvidia. During the tech event, the company captivated attendees with a live demonstration, showcasing its cutting-edge LiDAR technology and its seamless integration with the NVIDIA DRIVE AGX Orin platform, sending a clear signal of its potential in the autonomous driving space.
Innoviz’s advanced perception software, fine-tuned for the NVIDIA DRIVE AGX Orin platform, enables real-time processing and a deep understanding of a vehicle’s surroundings. This breakthrough technology offers exceptional object detection, classification, and tracking capabilities, laying the foundation for enhanced safety and performance in both autonomous driving and advanced driver-assistance systems (ADAS).
Commenting on this exciting development, CEO Omer Keilaf said, “By leveraging the NVIDIA DRIVE Orin platform, we will be able to offer a powerful combination of cutting-edge LiDAR sensors and perception software, enabling automakers to scale from L2+ ADAS all the way to fully autonomous vehicles.”
What Do Analysts Expect for Innoviz Stock?
Overall, Wall Street remains optimistic about INVZ stock, with a consensus “Moderate Buy” rating. Of the five analysts offering recommendations, three advise a “Strong Buy,” and the remaining two suggest a “Hold.”
The average analyst price target of $2.02 indicates 17.4% potential upside from the current price levels, while the Street-high price target of $4 suggests that INVZ could rally as much as 132.6% from here.
