Hesai (HSAI) Surges 11.59% on NVIDIA Partnership: Is This the Start of a Breakout?

Summary
• Hesai (HSAI) gaps up 9.9% premarket and surges 11.59% intraday to $27.06, nearing its 52-week high of $30.85.
• NVIDIA selects Hesai as lidar partner for DRIVE Hyperion 10, a platform enabling Level 4 autonomous driving.
• Analysts upgrade targets, with Goldman Sachs raising its price target to $36 and maintaining a 'Buy' rating.

Hesai’s stock is trading at its highest level since November 2025, driven by a strategic partnership with NVIDIA and bullish analyst sentiment. The stock’s 11.59% intraday gain reflects strong institutional buying, with Goldman Sachs increasing its stake by 345.7% in Q1 2026. The move positions Hesai at the forefront of the autonomous vehicle revolution, leveraging its ETX lidar technology in NVIDIA’s cutting-edge compute architecture.

NVIDIA Partnership Ignites Hesai's Intraday Rally
Hesai’s 11.59% surge is directly tied to its selection as a lidar partner for NVIDIA’s DRIVE Hyperion 10 platform, a reference architecture for Level 4 autonomous vehicles. The partnership integrates Hesai’s ETX ultra-long-range lidar, engineered for L3/L4 applications, into NVIDIA’s 2,000 FP4 teraflop compute system. This collaboration, building on a 2019 alliance, underscores Hesai’s role in enabling scalable, AI-defined fleets. The news aligns with Hesai’s recent production expansion plans and partnerships with Li Auto and Keeta Drone, amplifying investor confidence in its growth trajectory.

Automotive Sector Volatility Amid Hesai's Surge
While Hesai’s stock soars, the broader automotive sector remains mixed. General Motors (GM), the sector leader, trades down 0.6% intraday, reflecting cautious sentiment toward legacy automakers. Hesai’s rally highlights the divergence between traditional automakers and tech-driven enablers of autonomy. The stock’s performance underscores the sector’s bifurcation: companies leveraging AI and sensor innovation (like Hesai) outperform peers reliant on internal combustion engine transitions.

Options Playbook: Capitalizing on Hesai’s Bullish Momentum
• MACD: 0.82 (above signal line 0.57), RSI: 74.42 (overbought), Bollinger Bands: Price at $27.06 (above upper band $24.54).
• 200D MA: $21.23 (price at $27.06, 28% above), Support/Resistance: 200D range $22.26–$22.64 (broken).

Hesai’s technicals signal a short-term bullish breakout, with RSI nearing overbought territory and MACD divergence suggesting momentum. Key levels to watch: $27.28 (intraday high) and $25.17 (intraday low). The stock’s 4.17% turnover rate and 79.8x P/E indicate strong institutional interest. For options, focus on near-term contracts with high leverage and moderate delta to capture volatility.

Top Option 1: HSAI20260116C25
• Call, Strike: $25, Expiry: 2026-01-16, IV: 64.52%, Leverage: 10.98%, Delta: 0.776, Theta: -0.111, Gamma: 0.0988, Turnover: $233,210.
• High leverage and moderate delta position this call to benefit from a 5% upside (target $28.41), yielding a $3.41 payoff per share.

Top Option 2: HSAI20260220C25
• Call, Strike: $25, Expiry: 2026-02-20, IV: 64.79%, Leverage: 7.50%, Delta: 0.683, Theta: -0.0375, Gamma: 0.0574, Turnover: $77,062.
• Strong liquidity and gamma sensitivity make this contract ideal for a mid-term rally, with a 5% upside payoff of $3.41.

Action: Aggressive bulls may consider HSAI20260116C25 for a short-term play if $27.28 holds, while HSAI20260220C25 offers a balanced approach for a sustained breakout above $25.25.

Backtest Hesai Stock Performance
The backtest of HSAI's performance following a 12% intraday surge from 2022 to the present reveals a significant underperformance. The strategy yielded a return of -47.93%, lagging the benchmark by 116.68%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.32, the strategy demonstrated a high level of risk and volatility, as indicated by a 64.61% maximum drawdown and a Sharpe ratio of -0.32.

Hesai’s Breakout: A Catalyst for Long-Term Growth?
Hesai’s 11.59% surge on NVIDIA’s partnership validates its strategic positioning in the autonomous vehicle ecosystem. The stock’s technicals and fundamentals align with a bullish narrative, supported by institutional inflows and analyst upgrades. However, the 74.42 RSI and 64.52% IV suggest caution for overbought conditions. Investors should monitor the 52-week high of $30.85 and key support at $25.17. Meanwhile, General Motors’ -0.6% decline highlights sector volatility. Act now: Buy HSAI20260116C25 if $27.28 holds, or watch for a breakdown below $25.17 to trigger defensive positioning.