Experts Advise Investing in Driverless Car Stocks Now

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【Summary】Fully-autonomous vehicles are advancing at a rapid pace. Financial experts recommend investing in driverless car stocks now for a lucrative return.

Mia Bevacqua    Aug 05, 2018 10:04 AM PT
Experts Advise Investing in Driverless Car Stocks Now

Research from IHS Markit shows 26% of all new vehicles sold worldwide will be fully autonomous by 2040. That's 33 million driverless cars on the road. Consumers are already hooked on semi-autonomous features like adaptive cruise control and automatic braking.

So, it comes as no surprise investors are looking to stash their money in the growing AV industry. Expert opinion varies on which companies will be the most lucrative. But most financial gurus agree – the self-drive car industry is an excellent place to stash your money.

Self-driving car stocks recommended by experts

If you're looking for a place to invest your money – why not make it the autonomous car industry? The following are some of the companies labeled top picks by the financial world. 

Alphabet (Google)

Waymo's parent company, Alphabet, is an obvious pick. The tech giant already has a fleet of driverless vehicles cruising the streets of Arizona – without a professional driver behind the wheel, mind you. Right now, the companies autonomous vans are shuttling beta testers around. A ride-hailing service is promised for later this year. Alphabet's market cap is $742.1 billion, according to financial services company, the Motley Fool.

General Motors 

Under the guidance of CEO Mary Barra, General Motors has upped its autonomous car game. The General purchased Cruise Automation in 2016. This was a smart move, as the former start-up is now supplying the self-driving technology for GM vehicles. Next year, Barra and her team promise to bring their fully-autonomous Cruise AV to cities across the country, as part of a ride-sharing program.

STMicroelectronics NV

Before you invest your life savings in Alphabet stock, you may want to check out the Forbes article written by financial company CressCap CEO, Steven Cress. In it, he nominates his picks for the most financially promising companies in the AV industry. 

According to Cress "The companies we highlight do not derive the majority of their revenues from autonomous vehicles, (but) they are significant players in advancing the industry."

One such company is STMicroelectronics NV. Although not a household name, the firm is readily involved in AV development. It has been hard at work creating semiconductors capable of functions such as night-vision, micro-mapping, and 360-detection. Of course, all of these are fundamental to self-driving car development. 

Toyota Motor Corp. 

Japanese automaker Toyota has always been an innovator when it comes to advanced technology (think hybrids, fuel-cell vehicles, etc.). So, it makes sense that the company announced it would invest $2.8 billion in a Tokyo based company that builds software for autonomous vehicles. It's clear Toyota will be a top contender in the driverless car race. The Forbes article states, "This stock (Toyota) has a buy recommendation due to its impressive value, EPS revisions and profitability metrics."

And there are many more…

The best AV stocks will vary, depending on which investment website you visit. Some of the other companies recommended include Tesla (no surprise there), Intel, BlackBerry (yes, really), Qualcomm, Nvidia, Intel, Tianneng Power International Limited, and Apriv. 

Interestingly, the sources consulted only listed three automakers as top picks – the rest are tech companies. That goes to show where the automotive industry is headed. 

Sources: Forbes, The Motley Fool and InvestorPlace

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