NVIDIA shares hit a record-high on Tuesday, company to develop driver-assistance hardware system in cooperation with various sensor firms

Nvidia Corp (NVDA) said on Tuesday that it was working in cooperation with a range of self-driving sensor firms, including lidar company Luminar Technologies, to develop a system which can be used by auto makers for driver safety features as early as 2024.

Nvidia chose a diversity of sensor partners for the system, including those of Hella, Valeo, Continental AG and Sony Group Corp. Auto makers will still be able to select other sensors, but Nvidia will make sure the ones from its partners fit well with its chips and software.

“It really doesn’t make a whole lot of sense for every OEM to try and develop their own software stack from scratch,” Austin Russell, Chief Executive Officer of supplier Luminar, was quoted as saying by Reuters.

“I think Nvidia will see a lot of success here because there’s someone OEMs can depend on to deliver the right stack without having to spend tens of billions of dollars to get there,” Russell added.

NVIDIA shares closed lower for the third time in the past ten trading sessions on NASDAQ on Tuesday. The stock went down 0.48% ($1.47) to $306.57, after touching an intraday high at $323.10. The latter has been a fresh all-time high.

Shares of NVIDIA Corporation have risen 134.83% so far in 2021 compared with a 24.74% gain for the benchmark index, S&P 500 (SPX).

In 2020, NVIDIA Corp’s stock surged 121.93%, thus, it again outperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 22 out of 23 surveyed investment analysts had rated NVIDIA Corp’s stock as “Buy”, while 1 – as “Hold”. The median price target on the stock stands at $243.10.