Key Stats for Hesai Stock
- Price Change for Hesai stock: 7.5%
- $HSAI Share Price as of Jan. 15: $28.61
- 52-Week High: $30.85
- $HSAI Share Price Target: $30.91
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What Happened?
Bank of America is betting big on Hesai (HSAI) stock, calling the Chinese lidar maker a must-watch name in the rapidly expanding robotics sector.
Analyst Jessie Lo reiterated her buy rating on the company’s U.S.-listed shares and initiated coverage on its Hong Kong listing with a buy rating as well.
Lo’s bullish case centers on Hesai’s explosive growth in lidar shipments and ambitious capacity expansion plans.
At CES earlier this month, the company announced it will double annual production capacity from 2 million units in 2025 to over 4 million units in 2026. That’s a massive ramp-up for a company that just shipped over 1 million lidar units in 2025 alone, making it the first in the world to hit that milestone.
Hesai’s third-quarter results underscore why BofA is so optimistic.
- Revenue surged 47% year-over-year to $112 million, driven by booming demand for the company’s ATX lidar sensor.
- The ATX now accounts for roughly 80% of total shipments and has become the go-to choice for Chinese automakers looking to add advanced driver assistance systems to their vehicles.
- Hesai also turned a profit ahead of schedule, posting $36 million in net income for the quarter and hitting its full-year earnings target with a quarter to spare.
CEO David Li highlighted the company’s momentum on the recent earnings call, citing new design wins with leading Chinese EV makers such as BYD, Li Auto, and Xiaomi.
Hesai is also expanding into multi-lidar setups for Level 3 autonomous driving, where vehicles can handle most driving tasks without human intervention.
The company landed a flagship L3 program featuring its high-end ETX sensor paired with multiple blind-spot lidar units, with mass production slated for late 2026 or early 2027.
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What the Market Is Telling Us About Hesai Stock
Bank of America’s double buy rating on Hesai stock reflects confidence that the company is positioned to capitalize on two massive trends: the shift toward lidar as a standard feature in passenger vehicles and the rapid growth of autonomous robotics applications.
On the automotive side, Hesai stock has benefited from China’s regulatory push toward higher-level autonomous driving.
- In September, the Ministry of Industry and Information Technology introduced conditional approval for L3 vehicle production for the first time, paving the way for automakers to deploy multi-lidar systems that can provide full 360-degree coverage.
- Hesai expects L3 vehicles to require 3 to 6 lidar units per car, translating to a system value of $500 to $1,000 per vehicle. That’s a huge jump from the roughly $200 price tag on a single ATX sensor.
Beyond passenger cars, Hesai’s robotics business is gaining serious traction. The company holds a 60%-70% market share in the robotaxi lidar segment and recently signed new supply agreements with global players, including Motional and other leading autonomous driving companies, in North America, Asia, and Europe.
These deals are worth tens of millions of dollars and carry strong follow-on potential as fleets scale up. Hesai also shipped 40,000 to 50,000 units of its JT robotics lidar per quarter in 2025, serving applications such as home robots, factory automation, and agricultural machines.
CFO Andrew Fan noted on the earnings call that Hesai expects robotics lidar volume to double in 2026 compared to 2025, with higher average selling prices and margins than the automotive business.
That’s a key differentiator for Hesai stock, as it gives the company multiple growth drivers and insulates it from relying too heavily on any single end market.
Lo’s note also teased new business initiatives beyond lidar that Hesai plans to unveil in 2026. While the company hasn’t provided details, CEO David Li hinted at expanding into broader space sensing applications and physical AI infrastructure during the Q&A session.
He emphasized that Hesai’s strength in high-end semiconductors, manufacturing, and quality control positions it to tackle new markets where sensing capabilities are critical.
For investors, the takeaway is straightforward: Hesai stock is riding a wave of secular growth in autonomous driving and robotics, and the company is executing at a high level.
The planned doubling of production capacity signals management’s confidence that demand will continue to accelerate. With BofA backing the stock and momentum building across both automotive and robotics segments, Hesai looks like a compelling way to play the physical AI revolution.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
