As we stand at the threshold of a major vehicular revolution, autonomous driving stocks are seizing the spotlight. With the imminent advancements in self-driving technology, this sector has the potential to significantly transform portfolios, highlighting the compelling allure of this innovative field.
Moreover, the research firm Mordor Intelligence projects a self-driving market valuation of $33.48 billion in 2023, with a projected 22.25% annual growth rate over the next five years. This trajectory could propel the industry to a staggering $93.3 billion by 2028. The excitement continues as autonomous-driving technology may soon find applications in robotaxis and delivery vehicles.
Furthermore, while several frontrunners in autonomous driving are primarily entrenched in the research and development phase, some are already tapping into revenue streams through preorders, foreseeing robust future demand.
For the risk-tolerant investors, this journey could be monumentally rewarding. With anticipation, let’s delve into the top three autonomous driving stocks primed to lead this exciting charge.
Aurora Innovation (AUR)
Emerging prominently in the autonomous driving landscape, Aurora Innovation (NASDAQ:AUR) benefits from a rich heritage. With co-founder Chris Urmson, the brains behind Google’s trailblazing self-driving project, Aurora’s deep expertise is unquestionable, serving as the foundation for the company’s innovation and laying the groundwork for the future.
Transitioning to the core of its technological prowess, the “Aurora Driver” epitomizes versatility and robustness. This cutting-edge system navigates with precision, steering vehicles as diverse as sleek sedans to formidable Class 8 semi-trucks. What truly elevates its stature is its role in powering autonomous trucking trials for industry juggernauts such as FedEx (NYSE:FDX) and Uber (NYSE:UBER). By doing so, the company effectively bridges the gap between innovation and real-world utility.
Furthermore, with an impressive 65% of pre-launch goals already achieved, anticipation is surging for a revolutionary self-driving subscription service set to debut in 2025, promising a paradigm shift in mobility for years to come.
Mobileye (MBLY)
Mobileye’s (NASDAQ:MBLY) grip on the advanced driver assistance systems (ADAS) sector is unyielding, boasting a commanding 70% market share that continues to captivate investors. Its stock reflects this confidence, marking a notable 10% climb year-to-date, a feat underpinned by an outstanding 25.5% year-over-year escalation in annual top-line growth.
Moreover, the prospects shimmer for Mobileye with groundbreaking technological strides reducing costs, alongside a growing global demand for improved ADAS and autonomous features. This progress is bolstered by its 2022 separation from Intel (NASDAQ: INTC), a development that has provided Mobileye with increased flexibility and a more concentrated strategic direction.
Nonetheless, the outlook for the company’s performance extends beyond immediate achievements. As ADAS, semi-autonomous, and autonomous features gain traction globally, a significant upswing is expected over the long term. This captivating narrative gains even more momentum as TipRanks analysts fervently rally behind the stock, underscoring its status as a robust buy with a notable 38% upside potential, making it a tantalizing prospect for forward-thinking investors.
Luminar Technologies (LAZR)
Luminar Technologies (NASDAQ:LAZR) is carving its niche in the autonomous driving sector, offering advanced lidar systems to premier OEM vehicle manufacturers. The company celebrated a 63% bump in revenues in the second quarter. The driving force behind this remarkable growth is a substantial investment in research, development, and manufacturing.
Moreover, the previous quarter saw LAZR narrowing its loss to 21 cents per share, a pleasant surprise against the projected 23 cent loss. The company isn’t a stranger to outperforming expectations, having surpassed earnings-per-share estimates twice and revenue forecasts three times in the last four quarters. Adding to this optimistic trajectory, Barron‘s highlights the company’s anticipation of boosting sales by at least 100% year over year, a testament to its burgeoning market position.
Considering these dynamics, LAZR’s trajectory appears primed for an upward curve in the forthcoming quarter. Currently, its market valuation might not fully mirror the company’s substantial upside potential, hinting at a promising opportunity for discerning investors.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
