Top 7 Autonomous Vehicle Inventories To Buy Now
A new era for the automotive industry. The automotive industry is going through one of the biggest changes in its …
A new era for the automotive industry.
The automotive industry is undergoing one of the greatest changes in its history. There are two simultaneous trends that change everything. First off, after many false starts, it looks like the era of electric vehicles, or EVs, has finally arrived. Particularly in wealthy countries, governments are starting to enforce the adoption of electric vehicles in the coming years to reduce carbon emissions. This fits in well with the other radical change: autonomous vehicles. As cars move away from the internal combustion engine, this gives a big boost to other digital on-board systems besides the battery. The biggest prize would be a safe and inexpensive autonomous vehicle. It would change everything from commuting to carpooling, long distance trucking and more. The technology is new and fast, and some of the early favorites probably won’t make it to the finish line. That said, these seven companies seem poised to take advantage of the next trend in autonomous vehicles.
Volkswagen AG (ticker: VWAGY)
Volkswagen is a one-stop-shop for accessing the main trends in electric and autonomous vehicles. Volkswagen is one of the fastest adopters of electric vehicles in the world. Besides, it has all kinds of partnerships with autonomous driving companies, software makers, battery producers, etc. Volkswagen has a ton of options as it’s invested in or partnered with a laundry list of movers and shakers building the car of the future. Perhaps the most interesting is Argo AI. Volkswagen has invested more than $ 2 billion in a partnership with the autonomous driving company to develop the ID Buzz AD, a level 4 autonomous electric van, which means it could operate in autonomous driving mode. Argo AI showed it to observers this fall. Volkswagen hopes to launch an autonomous carpooling program using Argo vehicles in 2025.
Alphabet Inc. (GOOG, GOOGL)
Alphabet is another great choice for investors looking for exposure to autonomous vehicle stocks. The company’s Waymo unit has some of the most advanced autonomous driving technologies on the market. Waymo vehicles have been on the streets for years now, collecting data and improving their capabilities. Waymo also integrates seamlessly with other Google features, such as its Maps unit, for future integrated autonomous driving offerings. As with many Google moonshots, Waymo’s final monetization plan isn’t entirely certain. However, there is no doubt that the company has the technical skills and the financial capacity to be one of the dominant players in autonomous vehicles. In the meantime, the core business of Google search remains a cash machine, providing investors with a solid fundamental backdrop while they wait to see how Waymo develops.
General Motors Co. (GM)
Among the historic American automakers, General Motors has arguably the most interesting autonomous vehicle program. Namely, GM has the Cruise division, which has already made great strides. GM has secured investments from notable lenders such as SoftBank Group Corp. (SFTBY) and Honda Motor Co. (HMC). More recently, Microsoft Corp. (MSFT) injected $ 2 billion into the company, which valued Cruise at $ 30 billion in total. GM’s overall market cap is only $ 90 billion, which means the rest of GM’s business is pretty cheap, especially since the entire company is currently trading for just 8 times. its benefits. Cruise has already started driving his vehicles on the streets of California. In due course, GM should be able to integrate Cruise’s technology into its overall lineup of new vehicles.
Intel Corp. (INTC)
It is impossible to have autonomous vehicles without semiconductors and world-class computer systems. If mankind is to trust machines for transportation, they have to work flawlessly. Any kind of risk would make autonomous vehicles almost impossible to insure. Bringing autonomous vehicles to this level will require a combination of powerful hardware and finely tuned software. Enter Intel. The company bought Mobileye for $ 15 billion in 2017. Mobileye is a leader in collecting and processing data in autonomous vehicles. Ultimately, it aims to be the largest provider of advanced driver assistance systems, or ADAS, for autonomous driving. Intel was the logical owner of Mobileye because it can now produce both the hardware and the technology for vehicles. This sets the stage for the PC chipmaker to have a strong second act in the 2020s.
Texas Instruments Inc. (TXN)
Like Intel, Texas Instruments is another semiconductor company that quickly saw the opportunity in vehicles. While most semiconductor stores focused on fast-moving consumer electronics such as cell phones, Texas Instruments was looking to win the automotive market. It now occupies a prominent place there, selling chips and sensors for a variety of uses. It competes in the ADAS space and is also involved in automotive body electronics and lighting, electrical and transmission systems, as well as vehicle entertainment systems and display screens. Texas Instruments is a lower risk way to play the autonomous vehicle movement. Whichever producer ends up gaining the most market share, Texas Instruments is bound to sell a ton of chips that go into these cars.
Luminar Technologies Inc. (LAZR)
For a purer version of this idea, there are light sensing and ranging companies, or lidar. Several of them have recently gone public, making it difficult to decide who will be the ultimate winner. However, Luminar Technologies has had the most interest from traders and the best stock market performance of the group so far. It’s not hard to see why. Luminar has developed partnerships with key industry players such as Volvo and Daimler AG. Mobileye also selected Luminar to supply lidar sensors for its own autonomous vehicle program. As if that wasn’t enough, Luminar also recently announced a deal with Nvidia Corp. (NVDA) to advance this company’s Drive Hyperion autonomous vehicle platform. Luminar is not yet big; analysts see it generating $ 32 million in revenue this year. However, it is already generating commercial sales. Meanwhile, Deutsche Bank AG (DB) is bullish on the stock and sees revenues skyrocket to $ 400 million in 2024.
ChargePoint Holdings Inc. (CHPT)
Another way to track the autonomous vehicle megatrend is to own the charging equipment. Autonomous electric vehicles will be much more useful to consumers if they can also charge automatically. This opens up a wider range of utilities, especially for carpooling or commuting applications. To this end, ChargePoint is an attractive option. The company is building a network of tens of thousands of charging stations. It is currently the third largest charging network in the United States and one of the largest outside of Tesla Inc. (TSLA). ChargePoint is rapidly increasing its revenue and building a software ecosystem that should enable it to grow a business with higher profit margins. Adoption of ChargePoint’s technology has slowed during COVID-19, but if the company can get back on track in 2022, stocks could be a good deal given the 2021 setback. Infrastructure law should give a boost to companies like ChargePoint, which provide green infrastructure.
The seven main stocks of autonomous vehicles:
– Volkswagen AG (VWAGY)
– Alphabet Inc. (GOOG, GOOGL)
– General Motors Co. (GM)
– Intel Corp. (INTC)
– Texas Instruments Inc. (TXN)
– Luminar Technologies Inc. (LAZR)
– ChargePoint Holdings Inc. (CHPT)
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Top 7 Autonomous Vehicle Inventories To Buy Now originally appeared on usnews.com