Artificial intelligence (AI) is the key to self-driving cars. Now, AI might sound like something out of a sci-fi movie, but we’ve been using it in the real world for some time now.
In 2015, AI-powered AlphaGo defeated a human being in the Chinese game of Go. And back in 2001, robots beat humans in simulated financial trading competitions. Today, there are tons of uses for AI. And self-driving cars are only part of the reason AI stocks have skyrocketed in price.
There’s another reason for the high price tags on some AI stocks. The companies themselves were already established players in other industries. For example, Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG) made a name for itself long before there was any talk of self-driving cars. And Nvidia Corporation (NASDAQ:NVDA) was making graphics cards for computer gaming systems over a decade before it entered the autonomous vehicles world.
With stocks like these already driving market prices higher, what’s a thrifty investor to do? Well, one solution is to bypass tech companies and invest in car companies like Volkswagen AG/ADR (OTCMKTS:VWAPY) or Ford Motor Company (NYSE:F).
Each of these companies are already testing self-driving alternatives. And both companies’ stocks are currently under $20. But investing in an established automotive corporation doesn’t have the same profit potential as today’s high-tech opportunities.
So, let’s take a look at two under-the-radar AI stocks for you to invest in today:
Two AI Stocks Profiting From Self-Driving Cars
Ambarella Inc (NASDAQ:AMBA): If you know this name, it’s probably from the company’s relationship with GoPro Inc (NASDAQ:GPRO). Ambarella’s processors were instrumental in the development of the GoPro Hero line camera. But while the action camera world was taking off, Ambarella was quietly equipping the car world with dash cams. Now, the company is leveraging over 20 years of research to help it deliver the 360-degree surround view cameras serving as “eyes” on autonomous vehicles.
Plus, this past July, Korean car manufacturer Hyundai Mobis Co., LTD. announced it’s using Ambarella’s A9AQ Automotive SoC in its cars. And that means Ambarella is in the process right now of building out its automotive market portfolio. Maybe, that’s why the stock is still only trading at around $52 per share. And this makes AMBA worthy of consideration as a long-term play.
Aptiv PLC (NYSE:APTV): In 2015, Aptiv’s Smart Vehicle Architecture allowed one of its vehicles to complete the first ever coast-to-coast drive of an autonomous car. The car went all the way from San Francisco to New York City. Now, that’s a whopping 3,400 miles of successfully navigating the road. Pretty impressive stuff. Plus, the vehicle did all this with a “brain” and “nervous system” designed by Aptiv.
That success, however, brings this company’s stock price up to about $90 per share. Now, that’s still a bargain considering how much many high-tech innovators can cost. Not to mention, on Oct. 30, the company reported earnings.
APTV had an increase in revenue of 2%, up to $3.6 billion. It reported net income of $246 million. That’s up from $222 million in the third quarter of 2018.
And it produced net cash flow from operating activities of $325 million. That dwarfs the previous year’s total of $138 million for the same quarter. Of course, this happened as the GM labor strike occurred.
All in all, APTV is putting up some pretty impressive numbers.
But There Are Even More Uses for AI
Self-driving cars are only the tip of the iceberg, however, when it comes to AI. This innovation has so many personal and commercial uses. It’s going to revolutionize our world. That means there are multiple ways to profit from it. And my friend and Growth Investor Editor, Louis Navellier, wants to reveal some of his favorites to you today.
In this special segment, Louis is going to show you many of the ins and outs of the artificial intelligence revolution.
He’s going to unveil what it takes to profit from it. Plus, he’ll offer you a very special deal to make even more money with high-tech, high-growth investing today.
All you need to do to discover all his actionable insights is click here.
As of this writing, Michael Adams owned shares of NVDA.