Hesai Stock Rises on Nvidia Partnership News

Hesai Group's shares increased by 6% after investment bank Morgan Stanley highlighted Nvidia's decision regarding the choice of Sharpa's technology in the direction of humanoid robots.

Nvidia selected Sharpa as a reference design partner due to its high-precision robotic hand technology. The company is developing an integrated system that combines mechanical architecture, sensor technologies, and an artificial intelligence-based model, which enables robots to perform more precise and flexible operations.

According to Morgan Stanley, there is already an active supply agreement between Hesai and Sharpa, under which Hesai supplies specialized drive modules. This contract provides the company with stable and relatively high profitability.

According to analysts' assessments, Nvidia's selection of Sharpa creates a significant opportunity for Hesai, because if the production of humanoid robots based on Nvidia's platform reaches a large scale, demand for Hesai's components will automatically increase.

Morgan Stanley believes that over the next 12-18 months, the humanoid robots sector could become a significant source of additional revenue growth for Hesai, especially if Nvidia's ecosystem becomes widely adopted in the industry.

According to the bank's assessment, Hesai's positions are strengthening not only due to current contracts, but also because of the company's involvement in Nvidia's rapidly growing robotics ecosystem, which offers Hesai long-term growth potential.