In this article, we discuss 10 of the best LiDAR stocks to buy now. If you want to skip our industry analysis, you can go ahead and see the 5 Best Lidar Stocks To Buy.
The vision of fleets of autonomous vehicles seamlessly transporting passengers to their destinations has ignited the imagination of consumers and spurred substantial investments in recent years. Despite encountering certain challenges that have extended the timelines for the introduction of autonomous vehicles and postponed widespread adoption, the mobility industry still widely concurs that autonomous driving (AD) holds the potential to revolutionize transportation, consumer habits, and society on a grand scale. Analysts specializing in the automotive sector have closely monitored these emerging developments in the automotive landscape and have displayed a notable enthusiasm for LiDAR systems. LiDAR, an abbreviation for “light detection and ranging,” is a technology that incorporates a micro-electro-mechanical systems (MEMS) scanner to deliver precise and accurate representations of 3D landscape models. The technology operates by emitting rapid laser pulses—amounting to millions per second—that bounce off objects, allowing for the creation of three-dimensional images of the environment. This capability to obtain a clear and detailed 3D view of physical assets provides LiDAR with a competitive advantage over alternative technologies like radars and cameras.
Although LiDAR technology has been on the radar of financial experts for some time, it has garnered increased attention only recently. This shift has not occurred without a catalyst: the automotive industry is becoming more deliberate in its designs as it prioritizes the transition to fully autonomous, self-driving vehicles and electric cars, while also incorporating robotics to enhance manufacturing and production processes. While the electrification of vehicles and autonomous vehicle technologies are not recent developments, their demand and sales have experienced a remarkable surge in recent years. As per a report, the autonomous vehicle sector is projected to grow at a compound annual growth rate (CAGR) exceeding 40% from 2021 to 2030. Prominent companies that have introduced self-driving cars include Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and NVIDIA Corporation (NASDAQ:NVDA).
In another report published by the prominent management consulting firm McKinsey in January 2023, it was revealed that autonomous driving has the potential to add $300 billion to $400 billion to the revenue of companies operating in this sector by 2035. Within this projection, approximately $170 billion to $230 billion is anticipated to be attributed to Level 4 automation. Level 4 automation denotes a high degree of automation where the vehicle is capable of self-driving under specific conditions, but a human driver must be ready to take control when prompted by the system.
Based on a report from GrandViewResearch, the worldwide LiDAR market was assessed at $1.81 billion in 2021 and was projected to experience a CAGR of 9.8% from 2022 to 2030. This segment’s expansion is anticipated to persist in the coming years, primarily attributed to the rising utilization of aerial mapping devices. These evolving trends will consistently present opportunities within the LiDAR sector, and to some degree, influence related sectors as well. Investors seeking to capitalize on their investments should not overlook the continuous growth of this technology. Consequently, this article will explore some of the best LiDAR stocks worth considering in this context, including Allegro MicroSystems, Inc. (NASDAQ:ALGM), Luminar Technologies, Inc. (NASDAQ:LAZR), and Ouster, Inc. (NYSE:OUST), along with others detailed below.
Our Methodology
We have compiled a list of the 10 best LiDAR stocks to consider, based on data from Insider Monkey’s database of 910 leading hedge funds. These stocks are ranked in ascending order of the number of hedge funds that have invested in them as of Q2 2023. The companies mentioned on this list are either pure-play LiDAR firms, or hold significant participation within the industry.
10. Cepton Inc. (NASDAQ:CPTN)
Number of Hedge Fund Holders: 6
Cepton Inc. (NASDAQ:CPTN), a company headquartered in California, specializes in cutting-edge LiDAR-based solutions designed for various markets, including automotive (ADAS/AV), smart cities, smart spaces, and intelligent industrial applications. The San Jose-based company witnessed a surge in revenue for the second quarter. Cepton Inc. (NASDAQ:CPTN) reported Q2 revenue of $2.8 million, marking a 9% increase compared to the previous year and an 88% sequential growth. Product revenue also notably increased to $2.8 million, showing a significant 92% year-over-year rise and a notable 123% sequential increase.
According to Insider Monkey’s second quarter database, 6 hedge funds were bullish on Cepton, Inc. (NASDAQ:CPTN), the same as the prior quarter. Jim Tarantino And Chris Galvin’s Westerly Capital Management is the largest stakeholder of the company, with roughly 4 million shares worth $1.94 million.
Alongside Allegro MicroSystems, Inc. (NASDAQ:ALGM), Luminar Technologies, Inc. (NASDAQ:LAZR), and Ouster, Inc. (NYSE:OUST), Cepton Inc. (NASDAQ:CPTN) ranks among the best LiDAR stocks to buy.
9. AEye, Inc (NASDAQ:LIDR)
Number of Hedge Fund Holders: 9
AEye, Inc (NASDAQ:LIDR) is an innovative AI company that specializes in software-defined LiDAR solutions. The company’s standout offering, the 4Sight Intelligent Sensing Platform, seamlessly incorporates software-definable LiDAR technology to enhance human perception and facilitates early object detection.
On October 19, AEye, Inc (NASDAQ:LIDR) announced its receipt of the prestigious Reuters Automotive DRIVE Honours Award, an annual recognition of excellence in the automotive sector. The company’s 4Sight Intelligent Sensing Platform was honored with the Innovation award, acknowledging its product offering that is propelling advancements in the automotive industry.
At the close of the second quarter of 2023, 9 hedge funds were bullish on AEye, Inc (NASDAQ:LIDR) and held cumulative positions worth $216,359 in the company. This is compared to 5 hedge funds in the previous quarter. Israel Englander’s Millennium Management was the company’s largest shareholder for the quarter.
8. Luminar Technologies, Inc. (NASDAQ:LAZR)
Number of Hedge Fund Holders: 11
Luminar Technologies, Inc. (NASDAQ:LAZR) is a U.S.-based technology firm specializing in the development of vision-based LiDAR and machine perception technologies, primarily designed for autonomous vehicles. The company’s main research and development hubs, along with its headquarters, are situated in Orlando, Florida, and it also maintains a significant presence with a major office located in Palo Alto, California.
On October 6, Luminar Technologies, Inc. (NASDAQ:LAZR) announced that it had achieved a significant milestone by successfully passing its initial Run at Rate production test for Volvo Cars at its advanced, high-capacity manufacturing facility located in Monterrey, Mexico. This successful Run at Rate assessment represents a crucial prerequisite for automakers prior to commencing production (SOP) and sets the stage for the introduction of the Volvo EX90, where Luminar’s technology will be a standard feature in every vehicle.
At the close of the second quarter of 2023, 11 hedge funds were eager on Luminar Technologies, Inc. (NASDAQ:LAZR) and held collective positions worth $110.16 million in the company. This is compared to 14 hedge funds in the previous quarter with stakes worth $147.8 million.
7. Innoviz Technologies Ltd. (NASDAQ:INVZ)
Number of Hedge Fund Holders: 12
Innoviz Technologies Ltd. (NASDAQ:INVZ) stands as a prominent supplier of high-performance LiDAR sensors and perception software tailored for autonomous vehicles. The company produces InnovizOne, a solid-state LiDAR sensor specifically engineered for automakers, shuttle services, trucking, and delivery companies seeking an automotive-grade, scalable solution to advance vehicle autonomy.
Earlier this August, Innoviz Technologies Ltd. (NASDAQ:INVZ) and the BMW Group announced that they would take their ongoing collaboration to the next level with the initiation of a B-sample development phase for Innoviz’s second-generation InnovizTwo LiDAR sensor. This expanded partnership will introduce the first application of lidar-based highly automated technology in the upcoming BMW 7 Series, expected later this year. The outcomes of this initial B-sample phase will guide the BMW Group in deciding on a serial development agreement with Innoviz Technologies Ltd. (NASDAQ:INVZ), aimed at introducing a wide range of advanced automated features across the BMW lineup.
According to the second quarter database of Insider Monkey, 12 hedge funds were bullish on Innoviz Technologies Ltd. (NASDAQ:INVZ), compared to 15 funds in the preceding quarter. Himanshu Gulati’s Antara Capital is a significant position holder in the company, with 6.36 million shares worth $18.07 million.
6. Aeva Technologies, Inc. (NYSE:AEVA)
Number of Hedge Fund Holders: 13
Aeva Technologies, Inc. (NYSE:AEVA) is a technology company headquartered in Silicon Valley that is involved in the development, production, and marketing of LiDAR sensing systems and associated software solutions that enhance perception and autonomy. The company provides a broad spectrum of applications, spanning from autonomous driving to industrial robotics, consumer electronics, consumer health, security, and various other sectors.
Earlier this August, Solutions provider Railergy selected Aeva Technologies, Inc. (NYSE:AEVA)’s FMCW 4D LiDAR technology for its automatic train operation system, introducing instant velocity data and high-resolution sensing for obstacle detection. This significant upgrade will see Railergy replacing conventional 3D LiDAR systems with Aeva’s Aeries II sensors, which offer real-time velocity data and advanced sensing capabilities. Jakob Gärtner, founder of Railergy, praised Aeva Technologies, Inc. (NYSE:AEVA)’s 4D LiDAR technology for its role in enhancing the safety of their automated train operations, emphasizing that “Aeva’s technology ensures that our solutions are well-positioned to contribute to a more environmentally friendly and efficient rail industry through automation.”
At the close of Q2 2023, 13 hedge funds held stakes in Aeva Technologies, Inc. (NYSE:AEVA). The total value of these stakes amounted to $42.65 million. As of June 30, Daniel Patrick Gibson’s Sylebra Capital Management is the top shareholder in the company and has a position worth $33.87 million.
Much like Allegro MicroSystems, Inc. (NASDAQ:ALGM), Luminar Technologies, Inc. (NASDAQ:LAZR), and Ouster, Inc. (NYSE:OUST), Aeva Technologies, Inc. (NYSE:AEVA) ranks high on our list of the best LiDAR stocks to buy.
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Disclosure. None. 10 Best Lidar Stocks To Buy Now is originally published on Insider Monkey.
