Uber Technologies Inc (NYSE:UBER) shares climbed in Tuesday's premarket trading session. The rally follows an announcement regarding its autonomous vehicle (AV) strategy.

The ride-hailing giant is deepening its ties with chip powerhouse NVIDIA Corp (NASDAQ:NVDA).

Global Fleet Expansion Plans

The companies announced plans late Monday to launch a global fleet of autonomous vehicles. These cars will run entirely on Nvidia software. The rollout is scheduled for the first half of 2027.

Initial launches will target Los Angeles and San Francisco. The partnership aims to reach 28 cities globally by 2028. The fleet utilizes the Nvidia DRIVE platform and Nvidia Alpamayo AI.

Leadership on AI Integration

"Autonomous technology holds enormous promise to make transportation safer, more reliable and more accessible," said Dara Khosrowshahi, CEO of Uber. He noted the partnership combines advanced AI with Uber's global network.

NVIDIA CEO Jensen Huang highlighted the technological shift. "The ‘ChatGPT moment' for physical AI has arrived — robotic systems can now reason about the complexities of the physical world," Huang stated.

Roadmap to Level 4 Autonomy

The deployment will occur in distinct phases. It begins with a data-collection period. This moves to operator-led launches. The final goal is fully driverless Level 4 deployments.

Earnings and Outlook

Uber is scheduled to report first-quarter earnings on May 6. Analysts estimate an earnings per share of 71 cents on revenue of $13.30 billion. In the fourth quarter, Uber beat revenue estimates with $14.37 billion.

Analysts currently hold a consensus price forecast of $106.76 for UBER. Evercore ISI Group maintains a high target of $150.

UBER Price Action: Uber shares closed Monday up 1.72% at $74.66. The shares were up 3.74% at $77.45 during premarket trading on Tuesday, according to Benzinga Pro data.

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