10 Best Autonomous Driving Stocks To Buy According to Hedge Funds

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOGL), a global tech giant, owns a diverse portfolio of products, including Google Search, Google Maps, YouTube, Google Cloud, and Waymo. Waymo, Alphabet’s autonomous driving division, operates fully driverless rides in several cities, including San Francisco, Austin, and Los Angeles. By mid-2024, Waymo had logged approximately 25 million rider-only miles and continues to develop its “Waymo Driver” system for autonomous ride-hailing services (Waymo One) and trucking solutions (Waymo Via). As of August, Waymo reported providing 100,000 robotaxi rides across San Francisco, Los Angeles, and Phoenix, Arizona.

Earlier in October, Waymo secured a record-breaking $5.6 billion funding round, led by its parent company, Google. This massive investment aims to accelerate Waymo’s expansion of its autonomous ride-hailing service across the U.S., solidifying its lead over competitors like Tesla. Alphabet Inc. (NASDAQ:GOOGL) had previously committed to a $5 billion multi-year investment in Waymo, as stated by CFO Ruth Porat back in July.

On October 30, BMO Capital Markets raised its price target for Alphabet Inc. (NASDAQ:GOOGL) to $217 from $215, maintaining an Outperform rating. BMO cited robust performance across Alphabet’s business segments, with particular emphasis on the acceleration of cloud revenue and effective monetization of search services.