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Nvidia’s Latest Partnership Has Long-Term Implications for Lidar Stocks

Nvidia (NASDAQ:NVDA) stock has climbed more than 125% this year. While it’s not the only driver for the stock, its role in the lidar industry has played…

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Nvidia (NASDAQ:NVDA) stock has climbed more than 125% this year. While it’s not the only driver for the stock, its role in the lidar industry has played a key part in its continued success. Thankfully, for those interested in lidar stocks, a recent move by Nvidia shows that things are starting to heat up again for the industry.

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In the battle for lidar dominance, chipmaker Nvidia appears to be the tie that binds the various lidar suppliers together. Its self-driving car platform, Nvidia Drive Hyperion, has become the de facto standard for carmakers.

But NVDA stock isn’t the only name that should be on your radar if you’re looking for lidar stocks to buy.

Earlier this week, lidar darling Luminar (NASDAQ:LAZR) was the latest to make headlines by joining the Nvidia fold. The DRIVE platform, enabled with Luminar’s technology, will be available for vehicle models starting in 2024.

With this latest announcement, Nvidia now has six lidar sensor vendors — including Baraja, Hesai Technology, Innoviz (NASDAQ:INVZ), Magna (NYSE:MGA) and Ouster (NYSE:OUST) — all developing lidar sensors to run on the Drive platform. Microvision’s (NASDAQ:MVIS) A-Sample lidar is also rumored to have an Nvidia chip inside — although there has been no confirmation by either company. 

As frequent InvestorPlace readers know, lidars, or light detection and ranging systems, are laser-based sensors that detect the environment around them. Carmakers see lidar as a key technology to develop self-driving and advanced safety technology. Nvidia’s products provide the computing power for autonomous vehicles. Together, the combination provides a complete package for automakers.

Now, the question you’re probably asking is why does Nvidia’s platform need nine unique lidar sensors? Carmakers aren’t likely to choose all nice companies for commercialization. And that means the lidar industry is ripe for consolidation.

So, what’s going on in lidar? Here’s a closer look at how Nvidia’s involvement in the space might indicate great things to come for some lidar stocks moving forward.

NVDA: Playing the Field

When it comes to lidar, carmakers are playing the field, so to speak. Most self-driving carmakers are experimenting with different sensors. That way, they can modify how many sensors they use, where they put them and test out the different types. Carmakers also use different configurations to test new features and improve safety and self-driving capabilities.

As a result, no carmaker appears locked in with any single lidar supplier. That very sentiment — that decisions are still being made — has also been underscored by our recent conversations with lidar executives, including Innoviz CEO Omer Keilaf and Microvision CEO Sumit Sharma

It’s clear carmakers are exploring the various lidar technologies on offer. It’s also clear that the lidar players themselves are still working toward a final lidar product. So, by working with multiple lidar suppliers, Nvidia is able to provide carmakers with different plug-in technology solutions the company views as both good enough and scalable. 

By aggregating the best lidar solutions to its platform. Nvidia may also be setting the industry up for consolidation. Many industry observers, including the lidar CEOs themselves, have said it’s too difficult for multiple lidar companies to develop technology good enough for mass commercialization. “The market will eventually consolidate. Some sensors are used for reference and ground truth measurement, some for real long term series production,” said Keilaf in a statement to InvestorPlace

In fact, in our most recent conversation with Microvision, Sharma indicated that cost may ultimately be the single most important factor determining carmakers’ decisions. Having an end-to-end system, instead of various individual technologies (e.g., cameras, sensors or maps), may be the most cost-effective way of making autonomous driving mainstream. This desire for integration seems to have been the motivating factor for computing giant Intel’s (NASDAQ:INTC) decision to acquire Mobileye back in 2017.

Who’s on What Wavelength?

For carmakers, one issue still undecided is which lidar offers the best recipe for performance and price. Right now, it’s unclear whether 905 or 1550 nanometer lidar solutions will prevail. Case in point: Luminar and Innoviz, both of which have been selected by Nvidia. Yet, the lidars use different wavelengths (Luminar uses 1550; Innoviz uses 905).

Each lidar camp has a story to tell for why its technology is superior. For its part, Innoviz provided a strong endorsement for its 905 nm technology. The lidar company’s Q3 earnings call featured a guest appearance by Richard Rau, vice president of sensors, control units and software for BMW (OTCMKTS:BMWYY). Rau stated “specifically the specific IP Innoviz brings to the table clearly tells from my perspective the overall optimization towards the 905 with specifics that Innoviz can provide.” 

Luminar, Nvidia’s newest partner, isn’t lacking for high-profile carmaker relationships. Swedish automaker Volvo (OTCMKTS:VLVLY) has already selected the company’s lidar in new vehicles capable of hands-free, eyes-off highway driving beginning in 2022. The partnership also includes Gores Guggenheim’s (NASDAQ:GGPI) upcoming Polestar 3 from Volvo’s new electric-car division as well as a range of Volvo-branded cars and SUVs.

Based on the company’s latest announcement, Nvidia’s vehicle computing platform will begin production with Luminar sensors in 2024. Finally, adding more fuel to the fire, a few weeks ago, the company was the object of speculation as a potential supplier to electric vehicle (EV) upstart Lucid (NASDAQ:LCID). 

The Bottom Line on Lidar Stocks

After years of hype, self-driving car technology is finally becoming real. And Nvidia is moving carmakers one step closer to making these technology decisions. As an investor looking at lidar stocks, the tricky part is figuring out which companies are developing partnerships that will result in volume production contracts with carmakers.

Right now, there are no clear answers. But, as carmakers start to demonstrate their preferences, expect to see consolidation in the lidar industry. 

Your comments and feedback are always welcome. Let’s continue the discussion. Email me at [email protected].

On the date of publication, Joanna Makris did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joanna Makris is a Market Analyst at InvestorPlace.com. A strategic thinker and fundamental public equity investor, Joanna leverages over 20 years of experience on Wall Street covering various segments of the Technology, Media, and Telecom sectors at several global investment banks, including Mizuho Securities and Canaccord Genuity.

Click here to follow her Behind the Wall series, where she provides the insider scoop on the hottest technologies and trends from today’s business leaders, industry experts and money managers.

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Author: Joanna Makris

Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.





Author: Matthew Evanoff

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Energy & Critical Metals

NIO Stock Alert: One Big Reason EV Maker Nio Is Plunging Today

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors…

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors are left to ponder the news coming out of the Securities and Exchange Commission (SEC) as well as what it might mean for the EV industry as a whole.

Source: Sundry Photography / Shutterstock.com

So, what is this big news?

Chinese stocks that trade on major U.S. exchanges have been sliding since markets opened this morning, a direct result of the recent news from the SEC. The regulatory agency has announced that it will be implementing a new law that will require all international companies that trade on the NYSE or Nasdaq to turn over their financial books to U.S. regulators upon request or face being delisted.

One major stock has already delisted and others seems poised to follow. These events have cast a cloud of uncertainty over markets, and investors have many questions about their Chinese investments. Investors have a lot to think about as NIO stock falls, in terms of the future of both the company and its industry.

What’s Happening With NIO Stock

Like most China-based companies that trade in the U.S., NIO stock has been falling all day. As of this writing, it is down by almost 9%. Despite an earlier uptick, it isn’t showing signs of rebounding. The stock has been declining since December began, but yesterday’s news has caused it to plunge, pulling it into the red by more than 20% for the month. It’s clear that since news broke of Chinese ride-sharing giant Didi Global (NYSE:DIDI) making the move to delist from the NYSE, investors are nervous, bracing for a selloff.

Nio isn’t the only Chinese EV manufacturer that hasn’t been enjoying the ride today. Its peers XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) have seen worse declines. Both are down as of this writing, by 9% and 13%, respectively.

Why It Matters

While this news has sent Chinese stocks across many different sectors into a downward tailspin, there are other factors that are worth considering. Nio filed for an additional listing on a Hong Kong exchange in early 2021, but the decision was delayed for months, stretching into 2022 with little information provided by the company as to the reasons behind it. If the company was already planning to list in another market, this news from the SEC could prove the incentive it needs to delist in order to expedite the process. It’s hard to pinpoint exactly what this means for NIO stock.

Wall Street hates uncertainty. And since an important international company decided to comply with unprecedented orders from its government, uncertainty has reigned supreme. Nio’s incentive to delist is likely high, and if one industry leader makes a decision, others may follow. Adding to the turbulent market outlook is the fact that many Chinese business leaders haven’t said much since news broke of the SEC’s decision, leaving investors to wonder what the immediate future will look like.

The fact that Chinese EV stocks are slipping across the board indicates that this news is serious. The EV race, in which China’s companies have played a key role, has come to define investing in 2021 and looks set to continue into the new year. If such a prominent sector can feel the strain of this news, no industry is immune.

What It Means

The road ahead looks bumpy for all Chinese stocks that trade on U.S. markets, not just the EV sector. The emerging threat of the omicron variant was already casting doubt over markets, as investors braced for what will likely be known as the “omicron winter.” Now they have an even shorter-term concern to field.

With all this in mind, there are plenty of factors that contribute to a stock making the move to delist. We don’t know for sure what this news will mean for NIO stock, but it is certainly a name to watch as Chinese companies make decisions and trends start to develop.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Author: Samuel O'Brient

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