BofA Securities analyst Justin Post maintained a Buy rating on Uber Technologies Inc (NYSE:UBER) with a price target of $96 after the ride-hailing giant announced a partnership with NVDIA Corp (NASDAQ:NVDA) to collaborate on autonomous vehicle enablement.

The price target reflects a 20 times 2026E FCF multiple, which Post deems reasonable versus the FANG average of 28 times, given Uber's strong 2026E EBITDA growth outlook of 28% versus the FANG average of 17%.

The collaboration is focusing on supporting the development of AI-powered autonomous driving (AVs), pairing Uber's dataset of millions of daily trips with Nvidia's new Cosmos platform (first announced at CES) and Nvidia DGX Cloud.

Cosmos is Nvidia's new generative AI platform. It focuses on "physical AI systems," creating synthetic environments and eliminating cost barriers to developing advanced robotics.

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Nvidia DGX Cloud offers a fully managed AI platform preconfigured with advanced Nvidia architecture and software on "an open platform" for AI model development across multi-cloud environments.

Uber will likely commit significant resources, given the importance of this strategy to the business.

Nvidia chief Jensen Huang noted at CES that Cosmos is the world's first foundational model tailored explicitly for "Physical AI." He said autonomous vehicles will be the first multi-trillion-dollar robotics industry. He announced a partnership with Toyota, with Toyota's next-gen vehicles using Nvidia's Drive AGX Orin supercomputers and operating system DriveOS for real-time AI processing and integration of advanced driving and cockpit features.

He also announced a next-gen chip tailored for AVs called "Drive Thor," an advancement from its prior "Drive Orin" chip, enabling auto OEMs to more efficiently consolidate multiple functions in a single system, reducing overall system cost.

The variety of AV partnerships and products announced at CES underscores Post's thesis that multiple auto OEMs will integrate Level 4 self-driving technology long term, providing Uber with multiple available partners in AV ridesharing, including Uber, Toyota Motor Corp (NYSE:TM), Aurora Innovation, Inc (NASDAQ:AUR) with its self-driving trucks, and automotive supplier Continental. With numerous new AV competitors — Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Waymo, Tesla Inc (NASDAQ:TSLA), Amazon.com Inc.'s (NASDAQ:AMZN) Zoox — Post noted auto OEMs will increasingly focus on integrating Level 4 autonomy.

For Uber, providing data and ride imaging/video in an increasingly open-sourced manner could help auto OEMs reach Level 4 more quickly and effectively reduce the likelihood of a "Walled Garden" outcome for only one OEM. Uber's data could also have an advantage in addressing the ridesharing use case, with higher-quality data on the most essential trips and routes for ride-hailing.

Uber is one of Post's top picks for 2025.

UBER Price Action: Uber stock is down by 2.72% at $64.35 at publication Wednesday.

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