Are These The Best Autonomous Vehicle Stocks To Buy Today?
Investors who’ve been holding on to autonomous vehicle (AV) stocks would likely be satisfied with their performance in the stock market over the past year. Now the question lies in whether this momentum would continue. Any successful trials or new technology approved would easily propel AV stocks to newer heights. One of the benefits of self-driving cars would be that our roads will be safer. Some would ask, safer? How? Well, think of it this way, how many car accidents have been caused by some sort of human error, be it speeding, driving recklessly, or inattentiveness. On the other hand, self-driving cars are purely analytical with no human emotions involved.
The emergence of autonomous vehicles along with electrical vehicles (EV), has caught the attention of many investors and companies alike. Even top traditional automotive companies such as Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM) are not resting on their laurels. These companies recognize that the future of the industry is likely within the EV and AV market. In February, Ford hiked EV and AV investment commitment to $29 billion by 2025, and this is a promising sign.
Last December, Cruise, a majority-owned subsidiary of General Motors, started testing fully self-driving vehicles without driver monitors in San Francisco. Cruise has driven more than 2 million miles over the past five years and invested billions of dollars in the operations. With several fully driverless technologies out of the research and development phase, this is the beginning of self-driving cars being a reality. Therefore, with such exciting times ahead in the automotive industry, let’s take a look at some of the top AV stocks in the stock market today.
Autonomous Vehicle Stocks To Watch In April
- NVIDIA Corp (NASDAQ: NVDA)
- Microvision Inc (NASDAQ: MVIS)
- Alphabet Inc (NASDAQ: GOOGL)
- Luminar Technologies Inc (NASDAQ: LAZR)
First up, 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.
In March, self-driving truck company Plus announced that its upcoming AV platform will be built on Nvidia Drive Orin. The company 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, earlier this month. It will allow 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?
Next on 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 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, closing at $26.44 on Monday. MVIS stock skyrocketed by 47.13% on Monday’s trading session.
The company’s stock reached its all-time high price back in February. This was in conjunction with the company’s announcement of its milestone of completing A-Samples of its automotive Long-Range Lidar Sensor. Also, it has started outdoor testing of key performance features on its development platform. Besides, the company is one of the few pure-play lidar stocks out there. As Microvision will be announcing its Q1 earnings reports on April 29, investors could be expecting better financial figures year-over-year. With that in mind, would you consider adding MVIS stock into your portfolio?
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Last but not least, the tech giant that needs no introduction, Alphabet. In 2009, the company started the self-driving car project with a goal of driving autonomously for over ten undisrupted 100-mile routes. This project has since turned into Waymo. In the last year, Waymo has made significant progress. The company rolled out its 5th generation Waymo Driver and opened up its Waymo One to the public. The company will be announcing its Q1 earnings after Wednesday’s trading session. Investors will be watching to see if the company can continue its strong financial performance.
In February, the company began limited robotaxi tests in San Francisco. Waymo had plans of using employees as volunteers to gather feedback about the technology’s performance. With millions of people dying in auto crashes yearly, AV operators are increasingly leaning on this safety case to spur regulators to pass legislation allowing more fully autonomous vehicles on the road. Therefore, the company simulated dozens of real-world fatal crashes that took place in Arizona over nearly a decade. Waymo discovered that replacing either vehicle in a two-car crash with its robot-guided minivans would nearly eliminate all deaths. So, with all things considered, would GOOGL stock still be a good investment?
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Luminar Technologies Inc
Luminar Technologies is an autonomous vehicle and lidar technology company for passenger vehicles and trucks. In detail, the company designs and builds long-range lidar products for autonomous driving. Some may not be aware of this, but the company was only publicly traded in December last year. Ever since the company’s stock has been trading sideways for most parts. Nevertheless, it may be reassuring for investors to know that Volvo is an investor and partner of Luminar.
On Monday, LAZR stock jumped by over 15%. This is likely due to investors responding favorably to the news of its collaboration with Airbus SE. The two companies will be testing technologies that could increase aircraft safety and enable autonomous flights with obstacle detection. “We’re able to directly re-apply what we’ve accomplished for the automotive industry into aviation,” said Luminar Chief Executive Austin Russell. On a side note, the company also had a boost in leadership positions last week. Alan Prescott who was previously in Tesla, joined as General Counsel to lead Legal. Not only that, Trey Campbell who was previously in Intel Corporation, joined as vice president of investor relations. With all these in mind, is LAZR stock the best bet on the rise of autonomous driving?