1 Stock to Buy Now to Bet on Physical AI the Nvidia Way
Recently, Hesai Group (HSAI) joined NVIDIA’s (NVDA) Halos AI Systems Inspection Lab, the first ANSI National Accreditation Board (ANAB) accredited inspection lab for AI-driven physical systems. As a member of this lab, Hesai will evaluate and validate its LiDAR (Light Detection and Ranging) platforms within this unified AI compliance, safety, and cybersecurity framework. Earlier, the company…
Recently, Hesai Group (HSAI) joined NVIDIA’s (NVDA) Halos AI Systems Inspection Lab, the first ANSI National Accreditation Board (ANAB) accredited inspection lab for AI-driven physical systems. As a member of this lab, Hesai will evaluate and validate its LiDAR (Light Detection and Ranging) platforms within this unified AI compliance, safety, and cybersecurity framework. Earlier, the company was selected by NVDA to enable level 4 fleet deployment for NVIDIA DRIVE Hyperion 10, a compute-and-sensor architecture.
Physical AI is gaining significant traction, especially as NVDA eyes a major push to accelerate the technology. This push also places LiDAR at the forefront, and Hesai is likely to play a major role.
According to one estimate, the physical AI market is expected to grow at a 32.5% CAGR to $49.73 billion by 2033. Against this backdrop, Hesai plans to double its annual production capacity in 2026 from 2 million units to over 4 million units, driven by accelerating demand for ADAS and robotics LiDAR.
Headquartered in Shanghai, China, Hesai Group specializes in developing and manufacturing advanced three-dimensional LiDAR solutions for autonomous vehicles, robotics, and industrial applications.
The company integrates in-house research, design, and production to deliver high-performance sensors used in advanced driver assistance systems, mapping, and logistics robots. With a global presence, Hesai focuses on innovation to meet growing demand in the automotive and automation sectors. The company has a market capitalization of $3.41 billion.
Robust LiDAR demand in the autonomous driving and ADAS segments fueled revenue expansion and profitability turnaround, alongside strong sentiments. Over the past 52 weeks, the stock has gained 17,45%, while it has been up only marginally year-to-date (YTD). The company’s shares reached a 52-week high of $30.85 in September 2025, but are down 27% from that level.
www.barchart.com
On a forward-adjusted basis, Hesai’s stock’s price-to-earnings ratio of 54.11x is significantly higher than the industry average of 14.41x.
For the third quarter of fiscal 2025, Hesai reported 47.5% year-over-year (YOY) growth in its net revenues to RMB795.40 million ($111.73 million). Hesai Group’s product revenues reached RMB790.10 million ($111 million), up 57% from the prior year’s same quarter.
This growth stemmed primarily from higher sales of ADAS and robotics LiDAR products, fueled by strong demand across China and international markets. The company’s non-GAAP EPS grew significantly YOY to $0.28.
For the fourth quarter (to be reported on Mar. 24, before the market opens), Hesai Group anticipates net revenues ranging from RMB1 billion ($140 million) to RMB1.20 billion ($169 million), reflecting a YOY growth of roughly 39% to 67%. Wall Street analysts are robustly optimistic about Hesai’s future earnings. For fiscal 2026, EPS is projected to surge 105.4% annually to $0.76.
Last year, Wall Street analysts gave their bullish takes on the stock. Analysts at CICC initiated coverage of Hesai Group with an “Outperform” rating and a $23.50 price target, reflecting optimism about the company’s fundamentals and its ability to execute its business plan.
Goldman Sachs analysts raised Hesai Group’s price target from $26.30 to $36 and maintained a “Buy” rating. The analysts cited expanding LiDAR adoption in China and upcoming global production as reasons for this price target update. In addition, Goldman Sachs is significantly bullish on Hesai’s fundamentals, expecting a net margin of approximately 21% by 2030.
Last year, UBS analysts also initiated coverage of Hesai Group with a “Buy” rating and a $35 price target. UBS expects the company to become the world’s largest ADAS LiDAR supplier for passenger vehicles from 2025, driven by its partnerships with EV startups and autonomous mobility service providers. Analysts highlighted Hesai’s recent entry into the supply chains of top-selling domestic OEMs.
Hesai Group has become popular on Wall Street, with analysts awarding it a consensus “Strong Buy” rating overall. Of the 12 analysts rating the stock, a majority of nine analysts have rated it a “Strong Buy,” two analysts suggest a “Moderate Buy,” while one analyst is playing it safe with a “Hold” rating. The consensus price target of $33.20 represents 47.6% upside from current levels. Moreover, the Street-high price target of $38.10 indicates a 69.3% upside.
www.barchart.com
www.barchart.com
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
