Transformative technologies offer some of the most significant returns for investors. One area worth exploring is autonomous vehicle stocks. These stocks combine the power of AI and transportation, promising a new age of mobility.
One of the main applications of artificial technology today is in autonomous driving. This technology promises to revolutionize how people will drive for decades to come. Across the world, there is rising demand for it, which will undoubtedly drive up the price of these stocks.
A major reason why the technology is growing in popularity is that it improves safety. With more drivers looking for the safest solution to their mobility needs, these stocks could boom in the coming months and years. As such, getting into these autonomous vehicle stocks in August could pay by the end of 2024.
Below is a breakdown of why these three autonomous vehicle stocks are worth your consideration.
Aptiv (APTV)
Aptiv (NYSE:APTV) is one of the main players in the sector and leads by advancing autonomous driving technology. The company has a huge portfolio of hardware, software and system solutions that cater to various use cases, including electrification, safety, and automated driving.
The autonomous vehicle stock also partners with some of the leading companies in the car industry, such as Volkswagen (OTCMKTS:VWAGY) and Tesla (NASDAQ:TSLA).
Its financial performance has been quite impressive. Aptiv reported second-quarter results showing GAAP revenue of $5.1 billion that generated net income of $938 million for margins of 18.6%.
Cash flow from operations came in at $643 million compared to $535 million the previous year. For the full year, it expects net income from $1.79 billion to $1.89 billion on net sales of $20.1 billion to $20.4 billion.
Despite its great financial results, Aptiv’s stock has not performed well. Year-to-date, it is down 22.78%. Over the past 12 months, it has lost 35.02% of its value. Analysts, though, forecast its price could rise by 35.20% in the next year to $94.14 from its recent price of just under $70 per share.
If you are looking for great autonomous vehicle stocks with great cash flow and robust revenue, APTV is an excellent option. Amidst the financial market crash, stocks with a solid financial moat will emerge at the top when the financial dust settles.
Luminar Technologies (LAZR)
Luminar Technologies (NASDAQ:LAZR) is a pioneer in lidar technology, one of the main components in autonomous driving. The technology enables cars to map their environment using laser technology.
In recent years, Luminar has broadened the capabilities of lidar with the Iris lidar system that can map the environment up to 300 meters. The company is still quite young but its long-term trajectory looks promising.
In its most recent quarterly results, Luminar reported revenue of $20.97 million compared to $14.51 million the previous year, a 45% increase. Additionally, its gross losses shrank to $10.46 million compared to $14.62 million the previous year. As of the end of the first quarter, it had $268.3 million in total liquidity.
The company has continued defying revenue forecasts, signaling a rising demand for adopting its technology. One of its main partners to date is Mercedes-Benz (OTCMKTS:MBGYY). Its innovation and potential market make it a worthwhile long-term investment.
Year-to-date, LAZR is down 53.85%, and in the past 12 months is down 78.67%. For investors seeking to buy at the bottom, this is an awesome choice.
Analysts are optimistic about its future and forecast the stock price could rise 302.78% over the next year to $5.80 from the current price of $1.44.
Luminar’s continued strong financial results and the analyst’s optimism make it one of the best autonomous vehicle stocks to purchase in August 2024. It is an especially attractive prospect for long-term investors.
Micron Technology (MU)
Micron Technology (NASDAQ:MU) is a leader in memory chip technology, one of the key components used by autonomous driving systems. The company has seen a rapid rise in demand from auto companies seeking to offer autonomous driving.
The company’s chips are in especially high demand in advanced driver-assistance systems. Micron is upbeat about the technology, predicting that it will be its top source of revenue in coming years.
In the fiscal third quarter, Micron saw revenue rise to $6.81 billion compared to $3.75 billion the previous year. GAAP net income alsogreatly improved to $332 million compared to a net loss of $1.90 billion the previous year.
Its stock has performed quite well in 2024, rising 12.58% year-to-date. In the past year it is up 33.61%. Analysts give it a buy rating. They also forecast a 77.20% increase in the coming 12 months to $164.26 from the recent price of around $93.
In the coming years, there is massive potential for a boom in sales for its chips as autonomous driving takes over. Based on its great financial results, adding MU to your autonomous vehicles stocks portfolio could pay off in the long run.
On the date of publication, Joel Lim 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.
