
Cyngn Stock: Should You Buy The Nvidia Hype?
Cyngn (NASDAQ:CYN) stock has surged over 300% in just two trading days after AI chip titan Nvidia named the company in a blog post as one of a select group of robotics innovators using its Isaac robotics platform to build autonomous industrial vehicles. Cyngn specializes in autonomous vehicle technology tailored for industrial and logistics applications. Isaac is Nvidia's robotics platform that combines AI models for perception, reasoning, and control, serving as an open foundation model for robotic skills and decision-making. Cyngn's flagship product, DriveMod, retrofits existing industrial vehicles such as forklifts, turning them into autonomous machines.
The announcement from Nvidia comes ahead of Automatica 2025, a major global automation and robotics event where Cyngn is set to showcase its latest technologies. Cyngn's vehicles, which integrate Nvidia's Isaac platform with its own DriveMod software, are already operating in live commercial environments, catering to customers in logistics, manufacturing, and automotive sectors. Although these tools could play an increasing role in streamlining operations and reducing labor costs, investors should be cautious when it comes to Cyngn's stock. But, if you are looking for an upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.
JINHUA, CHINA - OCTOBER 25: Automated robotic arms work on the assembly line of new energy vehicles ... More at a factory of Chinese EV startup Leapmotor on October 25, 2023 in Jinhua, Zhejiang Province of China. (Photo by Hu Xiaofei/VCG via Getty Images) VCG via Getty Images
Cyngn Is Still A Risky Bet
Cyngn is still in the early stages of commercialization, with Q1 revenue of a mere $47,200, despite strong growth from a small base. Revenue volatility remains a concern. Over the past year, sales actually declined by 34.1%, falling from $0.6 million to $0.4 million, while the broader S&P 500 saw average revenue growth of 5.5%. Cyngn also posted a net loss of $7.6 million in Q1, reflecting continued heavy investment in R&D and scaling up its operations.
The company recently announced a $15 million direct offering at $5.01 per share, providing additional capital but also diluting existing shareholders. With a high cash burn rate, Cyngn may need to raise more funds in the future. Valuation is also stretched. Cyngn trades at a price-to-sales (P/S) ratio of 43.5, compared to 3.1 for the S&P 500. It's also worth noting that the recent rally was sparked largely by Nvidia's mention, not an exclusive partnership or contract. Cyngn is one of more than ten companies featured in Nvidia's blog post, and likely just one of many that will leverage Isaac moving forward. With limited revenue, significant losses, and a recent share issuance, the rally appears driven more by speculation, rather than business fundamentals. (Related: QuantumScape: 40x Upside For QS Stock?)
While you would do well to be cautious about CYN stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Meta hires four more OpenAI researchers, The Information reports
(Reuters) -Meta Platforms is hiring four more OpenAI artificial intelligence researchers, The Information reported on Saturday. The researchers, Shengjia Zhao, Jiahui Yu, Shuchao Bi and Hongyu Ren have each agreed to join, the report said, citing a person familiar with their hiring. Earlier this week, the Instagram parent hired Lucas Beyer, Alexander Kolesnikov and Xiaohua Zhai, who were all working in OpenAI's Zurich office, the Wall Street Journal reported. Meta and ChatGPT maker OpenAI did not immediately respond to a Reuters request for comment. The company has recently been pushing to hire more researchers from OpenAI to join chief executive Mark Zuckerberg's superintelligence efforts. Reuters could not immediately verify the report.


Bloomberg
27 minutes ago
- Bloomberg
Powell and Lagarde Count Cost of Trump's Turbulence
The global economy's concussion from five months of Donald Trump's presidency is likely to feature when five of the world's leading central bank chiefs discuss monetary policy in public on Tuesday. From tariff-related trade ructions to oil-price gyrations caused by Middle East hostilities, the question of how to handle the fallout from White House decisions may loom large as Federal Reserve chief Jerome Powell speaks on a panel with peers from the euro zone, Japan, South Korea and the UK.
Yahoo
31 minutes ago
- Yahoo
Aussie four-day work week could be 'accelerated' amid growing trend: '200 hours a year'
Australians in many industries could soon be working one day less each week thanks to artificial intelligence (AI). Large language models (LLMs) and other AI platforms are used every day by millions of workers across the country, and they can lead to a huge boost in productivity. However, questions are being raised about whether it could 'accelerate' the four-day work week trend that's been gathering pace over the last few years. Matt Tindale, managing director at LinkedIn Australia and New Zealand, told Yahoo Finance AI was changing so many ways that we work. 'It's reshaping how we think about work itself," he said. Major city announces four-day work week shift Centrelink $836 cash boost for 'very real' truth facing thousands of Aussies ATO issues July 1 warning to Aussies waiting on $1,500 tax refunds "We're likely to see continued growth in entrepreneurship, emerging small businesses and flexible careers that reflect a more fluid, empowered workforce. 'The widespread accessibility of knowledge through AI is transforming how talent drives economic growth." LinkedIn found four in five Aussies supported a four-day work week, and Tindale said AI was helping workers and employers look at their output as 'outcomes delivered' rather than a certain number of hours Reuters' Future of Professionals Report found AI tools could save some professionals up to 200 hours a year. Fundraising platform Raisely jumped on the trend in 2022, and chief customer officer Jordan Maitland told Yahoo Finance it's been made much easier by adopting the latest technology. 'Life is busy, and with AI we're able to get so much more done, which is almost at the expense of your people and you're almost getting too much done in five days that people are easily burning out,' she said. 'With all the technology and better ways of working, reward your people for that and let them have that day off and come back more energised. 'Otherwise, if we're working at this pace, five days a week, you're going to have continuous burnout and continuous turnover.' Swinburne University of Technology Associate Professor John Hopkins has been closely studying this new work trend and told Yahoo Finance there was no one-size-fits-all approach when it comes to the four-day work week. He explained every business would have to sort out which departments and staff would benefit from it the most and which would be most adaptable to working one day less per week. Hopkins admitted new tech like LLMs could help usher in that change. "AI does save time, so it has the potential to take hours out of a working week and support a shorter working week for employees," he said. "It'll address particularly repetitive tasks and things that would normally take a lot longer, and complete those pretty well and fairly accurately." But he wasn't fully convinced of a purely AI-led charge helping companies realise their four-day work week potential. "It's a huge question," he mused. "We don't fully understand the potential of AI yet. I don't think anybody does. It's still relatively early days. I think some companies are doing some quite exciting work with it, but I think the big impact is still to come." His hesitation lies in how other technological advancements like the internet and computers affected workers' output. These helped produce far more productivity for millions of people across Australia, however, they didn't lead to a shorter working week. 'We're, in fact, working longer hours now than we did 100 years ago when the five-day week was introduced because the technologies that we have in our pockets means that we finish at five o'clock and you're already working before 9am and we're working at weekends and evenings or holidays,' he said. Hopkins added that employers could just as easily keep the current setup and squeeze even more productivity and outcomes from workers. Those who are testing the new trend have seen some incredible results so far. Medibank has noticed it has helped cut down on unnecessary meetings and workloads as staff felt more committed to getting everything done in the new timeframe. Staff reported being 4.5 per cent more satisfied with their job and 6.7 per cent were more engaged with their day-to-day tasks. The shortened week also helped these employees be more willing to go "above and beyond" their normal duties. Overall health improved by 16 per cent, work-life balance and sleep jumped 30 per cent each, and unhealthy eating plunged 17.5 per cent. For Maitland's company, their trial found there was not a single drop in productivity. It actually went the other way, with a 10.1 per cent improvement. Staff also reported their work-life balance improved by nearly 18 per cent, along with increased energy levels. In a LinkedIn survey of 2,000 Aussie professionals, an overwhelming 77 per cent supported moving to a shorter week, and 82 per cent of HR staffers in a separate study said the same. It could be 20 per cent fewer hours per week with the same pay, or even a reduced salary. Others have suggested 10-hour work days, instead of the usual eight, to ensure the same amount of weekly work gets done, just with one day less. Recent research also found nearly three-quarters (74 per cent) of AI users in Australia utilise it for work. They're using it to help with writing (75 per cent), brainstorming (69 per cent), problem-solving (70 per cent), and to digest or simplify lengthy documents (68 per cent) or complex information (60 per cent). Hopkins told Yahoo Finance the key to ushering in a four-day work week was really analysing whether you can cut down on certain tasks that eat up your time. Some of the companies he has interviewed said they trialled the trend to address productivity issues, others did it to keep and attract the best talent. Whatever it was, they all had a reason to do it. But Hopkins admitted it's not a simple task to bring it in. 'Moving to a four-day week takes preparation. It takes a pilot. There has to be a transition to it, and training and everything else,' he said. 'There may be a trimming of work, or becoming more lean in terms of things that you do, maybe reducing the number of meetings.' But he also believed that, with enough time, it would become a reality for millions.