NVIDIA announced at CES 2026 that it plans to power Level 4 robotaxi fleets by 2027 through partnerships with autonomous vehicle operators. The chipmaker will provide its AI chips and Drive AV software stack to enable robotaxis capable of operating without human intervention in predefined geographic areas1.
Current Market Position
NVIDIA's automotive and robotics segment currently represents a small portion of the company's business, generating $592 million in the quarter ended October 2025—approximately 1% of total revenue1. CEO Jensen Huang has identified robotics and autonomous vehicles as the company's second-largest growth category after artificial intelligence2.
Technology and Pricing
The company's Drive AGX Thor automotive computer is priced at approximately $3,500 per chip. NVIDIA markets this as a way for automakers to reduce research and development costs while accelerating time to market for autonomous features1.
The system uses two AI approaches: a primary "end-to-end" vision-language model that processes visual sensors to determine vehicle paths, and a secondary safety-focused system using rule-based logic to handle situations where the AI encounters uncertainty1.
NVIDIA announced the Alpamayo family of open AI models and simulation tools designed for autonomous vehicle development, featuring a 10-billion-parameter model for complex driving scenarios3.
Partnership Developments
NVIDIA has established partnerships with Uber (announced October 2025) and Mercedes-Benz, which plans to launch vehicles using NVIDIA technology in late 20261. The company has not disclosed the specific partner or location for its 2027 robotaxi testing4.
Market Impact Projections
Analyst forecasts show significant growth potential for the autonomous vehicle market:
- Bank of America projects the autonomous vehicle market could reach $1.2 trillion by 20405
- The global autonomous vehicle market was valued at $207.38 billion in 2025, with projections reaching $5.44 trillion by 2035 at a 34.84% CAGR6
- Goldman Sachs Research estimates autonomous vehicles could generate $7 billion in annual revenue and capture 8% of the U.S. rideshare market by 20307
Financial Analyst Ratings
According to 39 analysts, NVIDIA stock carries an average "Strong Buy" rating with a 12-month price target of $252.49, representing a 35.47% increase from current levels8. UBS Securities estimates NVIDIA's total revenue could reach $146.87 billion by 20264.
NVIDIA's automotive platforms currently generate $380 million in quarterly revenue, with major manufacturers including Mercedes-Benz, Jaguar Land Rover, and Chinese automakers integrating the technology9.
Timeline
NVIDIA is targeting 2028 for point-to-point autonomous driving features in consumer vehicles, with initial 2027 robotaxi deployment expected to begin with limited availability1.
Read More
- CNBC - "Nvidia wants to power robotaxi fleets with chips, software by 2027" (January 5, 2026) https://www.cnbc.com/2026/01/05/nvidia-plans-to-test-a-robotaxi-service-in-2027-in-self-driving-push.html ↩ ↩2↩3 ↩4 ↩5 ↩6
- Benzinga - "Nvidia Takes On Robotaxis With Chips, Software And Big Ambitions" (January 6, 2026) https://www.benzinga.com/markets/tech/26/01/49716360/nvidia-takes-on-robotaxis-with-chips-software-and-big-ambitions ↩
- NVIDIA Newsroom - "NVIDIA Announces Alpamayo Family of Open-Source AI Models" (January 5, 2026) https://nvidianews.nvidia.com/news/alpamayo-autonomous-vehicle-development ↩
- FXOpen Market Pulse - "Analytical Nvidia (NVDA) Stock Projections for 2025-2040" (November 11, 2025) https://fxopen.com/blog/en/analytical-nvidia-stock-forecast-for-2024-2025-2030-and-beyond/ ↩ ↩2
- Yahoo Finance - "Nvidia, Qualcomm, and More Could Gain From Growing Autonomous Vehicle Market, BofA Says" (July 2, 2025) https://finance.yahoo.com/news/nvidia-qualcomm-more-could-gain-174530043.html ↩
- Precedence Research - "Autonomous Vehicle Market Size to Hit USD 5439.46 Billion by 2035" (December 2025) https://www.precedenceresearch.com/autonomous-vehicle-market ↩
- Goldman Sachs - "Autonomous Vehicle Market Is Forecast to Grow and Boost Ridesharing Presence" (July 3, 2025) https://www.goldmansachs.com/insights/articles/autonomous-vehicle-market-forecast-to-grow-ridesharing-presence ↩
- Stock Analysis - "NVIDIA (NVDA) Stock Price & Overview" (January 2026) https://stockanalysis.com/stocks/nvda/ ↩
- VT Markets - "NVIDIA Stock Price 2025: Complete NVDA Analysis, Chart & Forecast" (December 2025) https://www.vtmarkets.com/discover/nvidia-stock-price-2025-complete-nvda-analysis-chart-forecast/ ↩
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