Do You Have These Autonomous Vehicle Stocks On Your Radar?
When looking at the broader stock market, autonomous vehicle (AV) stocks are likely on the minds of many investors. While the idea behind a driverless car is relatively simple to the human mind, the technology behind it is much more complex. It requires technological advancements in global positioning, digital mapping, computing power, and sensor systems working together to make autonomous driving safe. Furthermore, most autonomous vehicle companies pitch the idea of safer roads and a reduction of human errors while driving.
According to the National Highway Traffic Safety Administration, more than 10,000 people succumb to drunk driving car accidents in the U.S. Now, imagine if these people had access to safe autonomous vehicles, such human errors would then be out of the equation, wouldn’t it? Earlier today, Stellantis (NYSE: STLA) announced its STLA AutoDrive platform. Developed in partnership with BMW, the platform will offer up to Level 3 autonomous driving capabilities.
Elsewhere, Ford (NYSE: F) reported earlier this month that it has conducted a trial with a simulated autonomous vehicle at a container port in the UK. The trial aimed to help understand how existing processes and human interactions can work alongside automated vehicles. So, if you believe autonomous vehicles are here to stay, why not take a look at some of the top AV stocks in the stock market today.
Best Autonomous Vehicle Stocks To Buy [Or Sell] In December 2021
- Intel Corporation (NASDAQ: INTC)
- Alphabet Inc (NASDAQ: GOOGL)
- Ambarella Inc (NASDAQ: AMBA)
- Luminar Technologies Inc (NASDAQ: LAZR)
Intel
Let us start the list with the company making waves in the AV space today, Intel. Traditionally, the company engages in the design and manufacturing of products and technologies. It is also one of the world’s largest semiconductor chips manufacturers and the developer of the x86 series of microprocessors. That said, it has its hands in the AV space through its Mobileye segment.
With more than 1,700 employees dedicated to developing state-of-the-art technologies in automotive safety and AV solutions, Mobileye stands as one of the global leaders in Advanced Driver Assistance Systems (ADAS). Yesterday, Intel announced that it plans to take Mobileye public in the U.S. in mid-2022. This deal could value the Israeli unit at more than $50 billion, according to Reuters.
According to the company, it also has no intention to divest nor spin off its majority ownership in Mobileye. Not only that, Intel claims that it will continue to provide technical resources to the automaker. Well, an IPO would likely provide the best opportunity to build on its track record for innovation as well as unlock value for shareholders. With that in mind, would you consider INTC stock as a buy right now?
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Alphabet
Following that, we have a company that needs no introduction, Alphabet. Most people would know the company through its Google segment that includes Google Services and Google Cloud. But what some may not be aware of is, Alphabet also has a self-driving car project that was started more than a decade ago with the goal of driving autonomously. The project eventually became Waymo.
Earlier in November, the company began to map in New York City for the first time. Everyone knows that it is the most densely populated city in the country with unusual road geometries. Waymo believes that its Waymo Driver will be able to handle these types of complex and dynamic activities. Should this be a success over time, it would certainly give great confidence to the company that its AV solutions will be able to handle any other major cities in the country.
On top of that, the company’s Waymo Via also expanded its partnership with UPS to autonomous freight movement with Class 8 trucks. This continuous collaboration would fill the demand and need for freight movements during the holiday season. So, this is a great example of how Waymo is creating an autonomous delivery solution that can offer customers unique safety benefits, flexibility, and scalability. Given these factors, would you consider investing in GOOGL stock?
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Ambarella
Ambarella is a company that primarily develops low-power system-on-a-chip (SoC) semiconductors. Besides that, it also focuses on creating AI technology that enables edge devices to visually perceive the environment and make decisions based on the data collected from cameras and other types of sensors.
Now, Ambarella’s automotive solutions are designed for both human and computer vision. It combines high-resolution imaging and neural network processing into a single, low-power embedded platform. These would include front ADAS cameras, smart electronic mirrors, drive recorders, fleet management solutions, and many more. With that said, could the company’s technology play a vital role in the future of autonomous driving?
Well, the company announced a partnership with China’s Dongfeng Motor Group back in September. The collaboration aims to build a Driver Monitoring System (DMS) based on Ambarella’s CV25 AI vision SoC and development platform. The first mass production of this system is in the Dongfeng Yixuan Max vehicle. With this on board, it will reduce the chance of car accidents, and increase the safety of the driver. All things considered, do you think AMBA stock will have more room to run?
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Luminar Technologies
To sum up the list, we have the developer of advanced sensor technologies, Luminar. Essentially, it caters to the AV industry by manufacturing and distributing commercial lidar sensors that measure distance using laser light. It would then generate an accurate three-dimensional map for automotive mobility applications. Given how oversold the company stock is right now, investors are likely keeping tabs on LAZR stock now.
After all, Luminar did announce last month that its lidar solutions were selected to be part of the sensor suite in the NVIDIA (NASDAQ: NVDA) DRIVE Hyperion AV reference platform. The DRIVE Hyperion will utilize one forward-facing long-range Luminar Iris lidar in its Level 3 highway driving configuration. Both companies believe that their technologies are becoming the de facto solution for major automakers. So, they will provide automakers with the most advanced AV development platform.
On top of that, Luminar also announced its third-quarter business updates in November. During the quarter, the company has successfully developed its alpha version of the full-stack Sentinel solution. The solution demonstrated both advanced automatic emergency braking and assisted highway driving capabilities. In addition, it is also on track for its goal of at least 60% year-over-year growth of its forward-looking order book in 2021. Safe to say, the company has been beating most of its milestones that were set out earlier this year. With that in mind, would LAZR stock be a top AV stock to buy at its current valuation?
