Nio Stock Slips Premarket As In-House Chip Gains Fail To Lift Sentiment — CEO Flags Margin Upside, Domestic Push By 2027

• Chip volumes are led by the Yangjian LiDAR chip, with over 400,000 units, and the Shenji NX9031 smart driving chip, with more than 150,000 units.
• Nio expects 35%-40% of its automotive semiconductors to be sourced domestically by 2027.
• Strong vehicle demand, led by the ES8, and improving profitability outlook continue to support growth.

Shares of Nio Inc. (NIO) slipped nearly 1% in premarket trading on Friday, as investors shrugged off the EV maker’s update that its in-house chip output has crossed 550,000 units, despite signaling growing scale, cost savings, and a push toward higher margins.

U.S.-listed shares of Nio snapped two straight sessions of losses on Thursday to end over 1% higher at $5.89. Shares are also headed for their highest weekly close in four months.

Nio Chip Scale Drives Margin Gains

Nio’s semiconductor milestone reflects rapid scaling across its core chip portfolio, led by the Yangjian LiDAR control chip and the Shenji NX9031, which powers advanced driving features. The Yangjian chip accounts for the bulk of volumes, with shipments exceeding 400,000 units since its rollout, while the Shenji NX9031 has crossed 150,000 units following its integration into newer models.

Speaking at a semiconductor industry event in Shanghai, CEO William Li said the in-house chips are already delivering cost efficiencies, with the Yangjian chip alone reducing per-vehicle costs by hundreds of yuan while also improving performance, according to a CnEVPost report.

The push underscores Nio’s broader strategy of absorbing higher upfront research and development costs to drive long-term margin expansion. The effort is backed by fresh capital, with Shenji, its chip unit, recently raising more than 2.2 billion yuan in its first funding round, valuing the business at close to 10 billion yuan.

Beyond internal use, Nio is also looking to commercialize its chip capabilities, with its Shenji unit and partner Axera pitching a co-developed M97 chip to other automakers.

Nio Targets Domestic Chip Push

Li said the automotive semiconductor industry is facing rising demand for AI computing power, fragmented chip architectures and increasing supply chain volatility.

In response, Nio is working to standardize its chip ecosystem, targeting fewer than 400 specifications across its vehicle lineup to improve scale efficiency. The company also expects 35% to 40% of its automotive semiconductors to be sourced domestically by 2027.

The chip push aligns with Nio’s broader focus on intelligent driving. Following the rollout of its World Model 2.0 system, assisted driving adoption has accelerated sharply.

Total mileage driven using assisted features rose more than 80% month-on-month, crossing 200 million kilometers in a single month. Usage of urban navigation features and reliance on intelligent systems also climbed significantly, with a growing number of drivers using assisted driving for a majority of their trips.

Nio Growth Backed By ES8 Demand

Nio’s vehicle business continues to show strength, with the company set to deliver its 80,000th third-generation ES8, a model that accounted for more than half of February deliveries.

The company expects first-quarter deliveries of 80,000 to 83,000 vehicles, supported by a recovery in orders following the Chinese New Year slowdown. The delivery momentum follows Nio’s fourth-quarter results, where it reported its first-ever operating profit, driven by higher-margin models.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for Nio was ‘bullish’ amid ‘high’ message volume.

U.S.-listed shares of Nio have risen 14% over the past year.

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