Technology is revolutionizing life as we know it. The best part is it’s creating monumental investing opportunities worth billions of dollars. These opportunities include autonomous vehicle stocks.
Self-driving vehicles are capable of sensing their own environments and moving safely. Elon Musk, for example, says Tesla (NASDAQ:TSLA) will have fully autonomous cars ready this year.
“I feel like we are very close. I remain confident that we will have the basic functionality for level five autonomy complete this year. There are no fundamental challenges remaining,” he said, as quoted by BBC News.
In addition, Hyundai-Aptiv is promising commercial autonomous vehicles by 2022.
Also, according to Forbes contributor, Jennifer Leigh Parker:
- Volkswagen (OTC:VWAGY) is allocating $52 billion into the autonomous race.
- General Motors (NYSE:GM) set aside $20 billion.
- Ford (NYSE:F) set aside $4 billion with plans to launch a self-driving service by 2022.
- Amazon (NASDAQ:AMZN) set aside $1 billion, and acquired Zoox, a developer of autonomous vehicles.
However, there are still plenty of obstacles, including issues with sensors, which must be able to work in all weather conditions, say The Conversation contributors. For example, a Tesla auto-pilot car hit two parked cars in July 2020.
At the same time, autonomous cars must also overcome issues with machine learning, or how such technology should be “trained, tested, or validated.” We need to know how these cars would operate, if they will be socially accepted and if regulations allow them on the road.
Challenges for not, the race is on to get autonomous vehicles on the road. As companies progress, here are some of the top autonomous vehicle stocks to keep on your radar:
Autonomous Vehicle Stocks: Aptiv (APTV)
“Our active safety and autonomous driving platform is an industry first and is capable of making decisions 34,000 times faster than a human. Our multi-domain controller is the first level-3 autonomous driving system and the most powerful computer platform in production. This serves as a building block for fully autonomous vehicles,” the company says.
Aptiv is in a joint venture with Hyundai (OTC:HYMTF), which plans to test fully driverless cars later this year. They also said they’d have a production-ready autonomous driving platform for robotaxi providers and fleet operators by 2022.
The venture was announced in March, with Hyundai contributing $1.6 billion in cash to the joint venture when the deal closed in March, according to a spokesperson for Aptiv.
[Correction: This entry has been edited to reflect Hyundai’s contribution to its joint venture with Aptiv.]
In a 2020 Automotive Vehicle Compute Platforms report, Nvidia led the list of companies developing AV platforms that will power the artificial intelligence in cars.
Also, in late 2019, the company introduced its Nvidia Drive AGX Orin, which is powered by a new system-on-a-chip (SoC). According to the company, it’s designed to handle the large number of applications and deep neural networks that run in autonomous vehicles.
Plus, in recent months, Nvidia and Mercedes-Benz announced an agreement to include its AI-enabled technology in all vehicles starting in 2024. This is a big win for Nvidia with an auto company that moves more than 2.3 million cars a year, says Forbes contributor Dave Altavilla.
Simple math tells us this could lead to a big win for Nvidia’s business.
Ambarella specializes in autonomous vehicles items, specifically front ADAS cameras, smart electronic mirrors, drive recorders, parking assist and fleet management systems. Plus, its computer vision technology is also useful in autonomous vehicles, providing help with blind spot visual detection. In July 2019, Hyundai Mobis announced will use Ambarella’s A9AQ Automotive SoC in its cars.
Growth doesn’t appear to be a problem for the company.
Revenue for the first quarter of fiscal 2021 was $54.6 million – up 16% year over year. Gross margins came in at 58.6% with a GAAP net loss of $15.5 million, or 45 cents per diluted share from $17.3 million, or 53 cents per diluted share.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.