What the Heck Is Going on With Nvidia and Cyngn Stock?

Key Points

• Cyngn stock saw massive gains after the company's partnership with Nvidia came into focus.

• Cyngn provides lidar and machine-vision technologies that help autonomous vehicles and industrial machines operate.

• The huge run-up for Cyngn following its Nvidia partnership may look out of sync with the company's sales, but it's possible that a bigger growth story is just getting started.

• 10 stocks we like better than Cyngn ›

Cyngn (NASDAQ: CYN) had its initial public offering (IPO) in October 2021. At the time, valuations for growth stocks were seeing huge bullish catalysts related to the low-interest rate environment and expectations that pandemic-related conditions would pave the way for a bigger push for automation initiatives.

The company provides 3D lidar technologies that help autonomous machines detect obstacles in the physical world. Despite interest in these technologies, the tech specialist's valuation saw a massive pullback since its IPO. On the other hand, its stock has recently seen a huge surge connected to a recently announced partnership with artificial-intelligence (AI) leader Nvidia.

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Is Cyngn one of the market's next explosive growth stocks, or just another flash in the pan?

Image source: Getty Images.

A partnership with Nvidia has powered huge gains for Cyngn stock

Nvidia published a blog on June 24 that referenced Cyngn as a robotics leader, immediately powering massive gains for the smaller company's stock. In the post, Nvidia described Cyngn as "a pioneer in autonomous mobile robotics" and noted that the company was integrating its DriveMod technology into the Isaac Sim system in order to bolster autonomous machine operations. The news kicked off a big rally for the stock, and the gains were just getting started.

On June 26, Cyngn announced a collaboration with Nvidia. As a result, the smaller company's share price skyrocketed more than 250% in the single session. With the report, the company announced that its DriveMod-enabled vehicles had been rolled out at several new industrial sites in the manufacturing, automotive, logistics, and consumer-packaged goods spaces.

With the benefit of these technologies, robotics systems can tell when they are in danger of running into another object. Through the integration of this tech, autonomous vehicles and warehouse machines have increased capabilities to avoid collisions. Cyngn's technologies are being used by companies including Deere & Co.'s John Deere division, Rivian, and BYD.

What does Cyngn's financial picture look like?

Even with the incredible rally, Cyngn stock is still down roughly 93% across 2025's trading -- and the partnership with Nvidia naturally raises questions about whether the small tech specialist is primed for big gains or another round of huge sell-offs.

Following its massive valuation surge, Cyngn quickly moved to arrange stock-selling deals in order to bolster its funding. Through the new investment rounds, Cyngn managed to raise $32 million in funding. The stock is still up roughly 110% over the last month, even with the dilutive impact of new share sales. As of this writing, the company now has a market capitalization of roughly $48 million.

With a market capitalization of that size, Cyngn is still a relatively small company. On the other hand, it's also trading at a huge premium relative to its sales to date.

The explosive surge for the stock appears to have been almost entirely powered by the company's connection to Nvidia. As the largest, most influential provider of key AI processing hardware, Nvidia is an incredibly powerful partner -- but there's still a huge amount of guesswork involved in charting what exactly the partnership means for Cyngn.

Cyngn recorded just $47,200 in sales in this year's first quarter. While this represented a significant step up from the $5,500 in sales it posted in the prior-year quarter, it's still small in the grand scheme of things. The business also posted a loss of $7.6 million in the quarter, increasing from a loss of $6 million in the prior-year period.

What comes next for Cyngn?

The incredible run-up for Cyngn stock highlights just how powerful Nvidia's name and influence in the market is right now. The market's outlook on the macroeconomic backdrop also helped facilitate gains for Cyngn stock. Investors are now broadly betting that the Federal Reserve will implement multiple cuts for the benchmark interest rate this year -- a development that would likely be very beneficial for speculative stocks like Cyngyn.

Notably, the announcement of Cyngn's partnership with Nvidia came on the heels of some potentially significant patent news. At the end of May, Cyngn published a news release saying that it had received a patent for "modular sensor system for automated guided vehicles," and stated that the significance of the patent was grounded in facilitating modular sensor systems that could help industrial machines better interact with complex geometries in the physical world.

It's unclear whether this patent played a role in Nvidia partnership with the company, but the team-up makes Cyngn an interesting play to watch as AI and robotics trends continue to unfold.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deere & Company and Nvidia. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.