10 Best Self-Driving Technology Stocks To Buy According to Hedge Funds

5. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Investors In Q3 2024: 68

Intel Corporation (NASDAQ:INTC) is one of the few integrated semiconductor manufacturers in the world which allows it to design and manufacture chips. It operates in the autonomous driving market through its processors and its Mobileye subsidiary. Intel Corporation (NASDAQ:INTC)’s Gaudi processors can be used to train autonomous driving models, which makes the firm one of the few in the world that can design and make chips for these applications. Additionally, Intel Corporation (NASDAQ:INTC) subsidiary Mobileye is a key player in the ADAS systems market. These systems are indispensable for autonomous driving cars, and Mobileye provides businesses with a one-stop shop to buy and use them in their products. However, 2024 has been full of turbulence for Intel Corporation (NASDAQ:INTC) and Mobileye. While the former has struggled with a slowing PC market and its turnaround efforts, the latter has had to stop internal LiDAR development and lay off employees as it battles a slow automobile market.

ClearBridge Investments mentioned Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter. Here is what the fund said:

“While the market environment clearly was a headwind in the third quarter, several of our large positions also faced challenging conditions, which negatively impacted results. In the information technology (IT) sector, Intel Corporation (NASDAQ:INTC) has come under additional pressure due to continued softness in the company’s core PC and server markets as well as concerns on the company’s longer-term competitive position. While Intel’s turnaround is not happening overnight, we are constructive on the outlook into 2025: the company’s product positioning should be much improved and it should be positioned to gain market share in a cyclical upswing in which it has strong earnings power. A somewhat adverse spending environment due to AI myopia has weighed on shares, but we still think the market is undershipping PCs and general servers following a COVID normalization period that saw demand get pulled ahead and then languish as companies froze IT budgets. The installed base is now getting older, and we expect a strong refresh cycle into next year. The delay is actually beneficial to Intel, whose product positioning will be all the more improved. While our investment case is not predicated on an M&A transaction, and we believe one is unlikely, the expression of interest in the company speaks to the value of the assets, which we think still trade at a meaningful discount to fair value.”