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Best Stocks To Buy Now? 5 Autonomous Vehicle Stocks To Watch

If you’re looking to gain exposure to autonomous vehicle stocks, here are 5 names to watch.

Top Autonomous Vehicle Stocks To Watch In The Stock Market Right Now

It has been an invigorating year for autonomous vehicle stocks so far. Why do I say that? That’s because self-driving technology has been one of the hottest investing themes on Wall Street in recent years. Autonomous vehicles (AVs) or self-driving cars bring a unique dimension of transportation to the table. In terms of benefits, it could improve road safety and offer convenience for users. According to a study conducted by the Center for Disease Control and Prevention, crash injuries are estimated to be the eighth leading cause of death globally. If we were able to switch to autonomous driving overnight, we would save more than 1 million lives per year globally. 

From a macro perspective, the newly emerging shift of transportation to AV has started to catch the attention of many investors in the stock market today. With so many big players entering the industry, it’s no wonder why investors are excited about being a part of the current autonomous vehicle craze. Though we still remain in the early stages of the AV industry, let’s take a look at five of the top autonomous vehicle stocks to watch in the stock market right now.

Autonomous Vehicle Stocks To Watch Now

MicroVision

First, up the list, we have Microvision. It is a company that pioneers laser beam scanning technology. The company specializes in lidar systems, which use laser beams to form three-dimensional images of the surveyed surroundings. Hence, creating a real-time map of the environment. So, the idea is to have onboard computers utilize this to help navigate self-driving vehicles. The company’s stock has surpassed all expectations over the past year. A year ago, it was still considered a penny stock but it has since risen by leaps and bounds, with MVIS stock surging more than 300% year-to-date.

Source: TD Ameritrade TOS

Of course, MVIS stock is also a popular meme stock trending in the subreddit r/wallstreetbets. And that explains the company’s recent momentum. Another possible explanation for the surge in stock price is the stock’s inclusion in the Russell 2000 Index. Despite the company’s underwhelming first fiscal quarter in which sales fell 67% and net losses widened, the company’s bet on lidar could pay off really well should it be able to have an automotive deal. But with MVIS stock’s recent social media fame, would you ride on its momentum or wait until the dust settles?

[Read more] Top Stocks To Buy Now? 5 Dividend Stocks To Watch

Ambarella

Next up, Ambarella is a computer vision (CV) chip designer. Its computer vision technology is useful in self-driving vehicles, providing help with blind-spot visual detection. The company has been riding on the bullish momentum in the space after positive progress in its CV chip development. This is especially prominent among automakers where tens of millions of cars could potentially benefit from the advanced driver-assist functions made possible from its CV chips.

Source: TD Ameritrade TOS

The CV chip designer made a nice comeback in its first-quarter fiscal after a 3% tumble in full-year sales last year. From the fiscal report, revenue came in 28% higher to $70.1 million, topping analyst estimates as the auto industry quickly recovered. Adjusted net income also came in 575% higher to $8.92 million. And more importantly, the management’s outlook for the second quarter is particularly encouraging, where revenue is expected to be 51% higher year-over-year in the coming quarter. With improving fundamentals and the high potential of the AV technology, is AMBA stock worth an addition to your watchlist today?

[Read more] Best Stocks To Invest In 2021? 3 Cyclical Stocks To Watch

General Motors

One of the traditional automakers trending lately is General Motors. GM stock price had another boost this month after the company raised its profit outlook. If anything, this indicates that GM is achieving greater ability in acquiring chips and allocating them among its model lines. The Detroit automaker also expects first-half profit to be “significantly better” than previously forecast. This is due to the success of shifting scarce semiconductors to boost the production of highly profitable trucks in the North American market.

Source: TD Ameritrade TOS

If you’re new to the space, General Motors is one of the first few traditional automakers to make huge investments in autonomous vehicle technologies. One of its subsidiaries, Cruise, may soon be giving rides in driverless test vehicles to passengers in California. Notably, Cruise had raised billions of dollars from strategic backers including Microsoft (NASDAQ: MSFT) and Walmart (NYSE: WMT). With General Motors firing on all cylinders in the AV and EV market, wouldn’t it make sense to load up on GM stock right now? 

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NVIDIA

Coming up next, we have a leading tech company that dominates the graphic processing units (GPU) market, Nvidia. For those unfamiliar, the company designs GPUs for the gaming and professional markets. Also, it manufactures system-on-a-chip units for the mobile computing and automotive markets. Nvidia has researched autonomous driving technologies for several years, providing a scientific basis for its latest venture. Its main role in AVs is its NVIDIA DRIVE AGX Orin, a highly advanced software-defined platform for autonomous vehicles and robots. Orin will be targeting automakers’ 2022 production timelines. The company’s stock is just as exciting as its products, showing gains of over 20% over the past month. 

Source: TD Ameritrade TOS

In March, self-driving truck company Plus announced that its upcoming AV platform will be built on NVIDIA DRIVE Orin. Plus plans to roll out the platform in 2022 and has already received more than 10,000 pre-orders. On top of that, Nvidia also revealed its next-generation AI-enabled processor for AVs, NVIDIA DRIVE Atlan, in April. It allows automakers to build software-defined vehicles that are programmable and upgradeable through secure, over-the-air updates. This will be for vehicles with 2025 production targets and beyond. Therefore, with such exciting developments surrounding the company, would you consider buying NVDA stock?

[Read More] 4 Artificial Intelligence Stocks To Watch Right Now

XPeng Motors

XPeng Inc is a China-based company that engages in the design, development, production, and sales of smart EVs. The Company’s primary products are environmentally friendly vehicles, namely an SUV (the G3) and a four-door sports sedan (the P7). The Company aims to develop full-stack autonomous driving technology, in-car intelligent operating systems, and core vehicle systems in-house through its proprietary software, core hardware, and data technologies.

Source: TD Ameritrade TOS

If you’re looking for autonomous vehicle stocks to bet on the world’s largest new-energy vehicle market, look no further than XPeng. From its May delivery update, XPeng delivered a total of 5,686 Smart EVs. This represents a 483% increase year-over-year. Out of which, 3,797 consisted of P7s, and 1,889 were the G3s. That demonstrates the strong customer appeal of XPeng’s market-leading smart features. Given its advanced technologies coupled with strong delivery numbers, would you agree that XPEV stock is a top autonomous vehicle stock to buy right now?

By Amos C

Amos is the global markets correspondent for StockMarket.com. His boots on the ground insight into emerging markets has given him the unique ability to stay ahead of new market trends and deliver timely data when it matters most. Based in Asia, Amos has made a point to monitor the foreign markets closely, dissect stock market trends and then apply them to the North American markets; in addition to global markets.

Amos has a deep-rooted background in foreign exchange and commodities. His previous experience working within the cryptocurrency arena has given him the advantage to identify the fast-moving stock market and financial trends. Amos calls Hong Kong home and has been a financial content writer for the last 3 years.

He has managed teams of international media strategists and financial writers to cover all top stories in the stock market each day. His skills include his tireless drive to find the most valid information and actionable details that investors can use to formulate valid decisions on stocks to buy or stocks to avoid. Furthermore, Amos’ ability to cover trending stories across the globe brings StockMarket.com a fresh perspective on key data and how it not only affects the North American markets but also how it could translate to the world markets alike.

Most of the time you can find him diving into corporate filings, focusing on fundamentals that could influence major market moves. One of his passions is researching technology and biotechnology stocks. Some of the most cutting-edge innovations have stemmed from these industries. While many don’t become industry blockbusters, the processes and applications of these innovations has led to some of the biggest developments known to man in the modern age. As a global correspondent, Amos has been able to see both sides of the story as it relates to world news and offers a true, personal approach, cutting through the noise of the mass media. He was integral in reporting on the Hong Kong uprising and doing first-hand research on international sentiment from the novel coronavirus.

In his free time, Amos is an avid fan of music and art and enjoys attending concerts.

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