Shares of microcapsule company AEye, which makes AI-powered optical sensors, soared 158% on July 24. Investors were encouraged by news  that AEye's flagship development is integrated into chipmaker Nvidia's popular platform for autonomous vehicles. This is "a powerful channel for commercial scaling in the automotive sector," AEye believes.

Details

AEye stock jumped on Thursday, July 24, by more than 158% to $2.92 per paper. This is the maximum since the beginning of January. The rally did not end there: in the morning trading on July 25, the shares rose by another 18%;

Since the beginning of the year, the company's value has increased by almost 130%.

What caused the rally

Investors reacted to AEye's news that its flagship product called Apollo is integrated into the Nvidia platform. We're talking about lidar - which is essentially an optical analog of radar that uses light to measure distances to objects. Чипмейкер будет использовать Apollo на своей платформе DRIVE AGX, которую называют «мозгом для беспилотных автомобилей». 

AEye predicts that this partnership will allow it to deploy its technology "in millions of passenger cars in recent years." "Now that Apollo has become part of the NVIDIA DRIVE ecosystem, we have a new channel for commercial expansion in the automotive industry," commented CEO Matt Fish;

What the analysts are saying

Nvidia has dozens of members in its ecosystem, including manufacturers such as Nissan, NIO and Chery, says  Nvidia's website, and AEye has direct access to them, accounts  broker-dealer Noble Capital Markets. The Apollo sensor offers a unique combination of range detection (up to 1km), compact design and software-driven features, and continuous analytics. They cite the last point as the most compelling: it means the sensor can receive updates "over the air" like a smartphone, which means it doesn't require replacement.

AEye stock has a rating from only one Wall Street analyst, following data from MarketWatch. His recommendation is to buy these securities. At the same time, the target price was $1.33 after rallying already below the current quotes.

This article was AI-translated and verified by a human editor

Share