As we stand at the cusp of vehicular evolution, autonomous driving stocks are turning heads for good reason. Forecasts are optimistic, predicting robust annual sales growth at an incredible 23% from now through 2028. The next half-decade promises a financial bonanza for investors with a keen eye on future trends. At the heart of this momentum is its enormous total addressable market. Once the dominos of self-driving technology start to fall, we’re looking at a sector that could potentially reshape portfolios, positioning autonomous driving stocks for robust returns over the long haul.
The idea of effortlessly transitioning from a shopping spree to a relaxing ride home, without the grind of navigating traffic, is becoming more tangible with every passing day. It could be a groundbreaking journey ahead for those who can stomach the risk. With that said, let’s explore the top autonomous driving stocks set to pave the road ahead.
Luminar Technologies (NASDAQ:LAZR) isn’t just any name in the autonomous driving market; it’s a business with a disruptive vision to make vehicles virtually uncrashable. Luminar’s strength lies in providing lidar systems to leading OEM vehicle manufacturers. Its recent financials paint an encouraging picture, with an incredible 63% surge in second quarter revenues, hitting $16.2 million.
Though these growth numbers are laudable, the company’s losses are also growing, which could raise eyebrows in a rate-sensitive market. Yet, with interest rates beginning to plateau, the focus might soon shift back to Luminar’s promising forecast of doubling its sales this year.
Moreover, Luminar isn’t merely resting on its laurels. It’s pushing the envelope, channeling resources into research, development and manufacturing to solidify its position in its burgeoning niche. Moreover, its strategic partnerships span from auto OEMs and trucking giants to lidar software developers and aerospace stalwarts such as NASA. Hence, the road ahead seems lit brightly for this emerging leader in the autonomous sphere.
Aurora Innovation (NASDAQ:AUR) has rapidly emerged as a standout name in the realm of autonomous driving stocks. It boasts a renowned lineage with one of its co-founders in, Chris Urmson, the former maestro behind Google’s pioneering self-driving car venture. Now, in its independent avatar as Waymo, this venture underscores Aurora’s rooted expertise.
At the heart of Aurora’s offerings is the “Aurora Driver,” a versatile self-driving system that’s adept at guiding everything from compact sedans to Class 8 semi-trucks. Built to withstand the whims of Mother Nature, its resilience against diverse weather conditions sets it apart from its competition. Moreover, its compact design ensures it seamlessly integrates with varied vehicle types.
What amplifies Aurora’s allure is its real-world applications. These include powering autonomous trucking trials for major companies such as FedEx (NYSE:FDX) and Uber (NYSE:UBER). Moreover, with an impressive 65% of its pre-launch milestones already ticked off, Aurora is poised to roll out a transformative self-driving subscription service by 2025.
Mobileye (NASDAQ:MBLY) is a frontrunner in advanced driver assistance systems (ADAS) and semi-autonomous driving, with an impressive 70% stake in the total ADAS market. Given its paramount position in this space, it’s no surprise that MBLY has caught the discerning eye of speculators everywhere. Bolstering this interest is the stock’s 7.5% uptick year-to-date and a remarkable top-line growth, registering at 25.5% year-over-year.
Yet, the horizon looks even brighter with technological advancements driving down costs and a global push for ADAS and autonomous features; the enterprise’s trajectory is poised for a steeper ascent. Its spin-off from Intel (NASDAQ:INTC) in 2022 added another layer of optimism. This strategic move has potentially equipped the MBLY management with greater incentives, setting the stage for an even stronger financial performance in the coming years.
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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post 3 Autonomous Driving Stocks That Should Be on Every Investor’s Radar This Fall appeared first on InvestorPlace.2023-09-18T22:12:53Z dg43tfdfdgfd