Bank of America said Uber Technologies Inc (NYSE:UBER, XETRA:UT8)’s medium-term autonomous vehicle (AV) supply outlook has significantly improved following the company’s expanded partnership with Nvidia Corp (NASDAQ:NVDA, XETRA:NVD).
Uber and Nvidia announced plans to launch Level 4 robotaxis in 28 global cities by 2028, beginning with LA and San Francisco in the first half of 2027.
The rollout will involve several automakers, including BYD, Geely, Mercedes, Nissan, and Toyota, using Nvidia’s DRIVE Hyperion platform and Alpamayo reasoning-based AI models. Vehicles will initially operate with safety drivers before transitioning to fully autonomous operations.
The bank highlighted that Uber appears poised to have multiple AV partners operating in Los Angeles and San Francisco by 2027, marking a potential shift in the US rideshare market.
“A growing roster of US. Level 4 OEM suppliers, combined with Nvidia’s L4 platform development commitment, can shift the medium-term US AV supply outlook in a more favorable direction for Uber,” they wrote.
The analysts noted that broader AV production could allow Uber to purchase and lease vehicles while encouraging other providers, such as Waymo, Tesla, and Zoox, to make their vehicles available on Uber’s network.
Nvidia also announced updates to its L4 autonomy stack, including the Halos OS safety framework and the Alpamayo 1.5 AI model, as well as collaborations with mobility providers, including Lyft and Amazon, to enhance in-cabin intelligence.
Bank of America reiterated its ‘Buy’ rating on Uber, citing the improved AV supply prospects as a potential driver for stock multiple expansion.
Shares of Uber traded up almost 6% on the news, trading hands at $79, while Nvidia stock was little changed at $183.