In this piece, we will take a look at the 11 Best Lidar Stocks to Buy According to Hedge Funds.
The United Nations reports that approximately 1.35 million people die on the road annually, often due to human error. Despite various safety measures, accidents persist, driving the push for self-driving cars. These vehicles use Lidar (Light Detection and Ranging) technology to emit laser pulses, creating a 3D map of their surroundings in microseconds, allowing faster reaction times than human drivers.
According to S. N. Jha, the Principal Consultant at Fact.MR, Lidar sensors are very accurate, a fact that is driving the popularity of AVs. He writes: “Lidar sensors have been proven accurate in various autonomous driving technologies and, subsequently, are deployed in the automotive industry. Moreover, increasing expenditures in the development of numerous autonomous driving technologies are projected to stimulate the demand for Lidar sensors and scanners in multiple automotive applications in the coming 10 years.”
And there is plenty of evidence backing Jha’s assertions. Markets and Markets valued the Lidar market at $1.4 billion in 2023 and estimated that it would expand at an 18.2% CAGR between 2023 and 2029.
However, it is possible that the estimates are hugely conservative or do not expand their focus beyond autonomous cars. In recent years, some companies have developed concepts of autonomous drones and robots for use in logistics. Their goal is to get goods, especially in an e-commerce setting, from point A to B without a human in control. Besides reduced accidents, the “autonomous-ization” of logistics could lower operational costs for e-commerce companies, increase efficiency, and help them contribute positively to the battle against global warming.
ARK Invest estimates that companies in the autonomous logistics space could generate as high as $80 billion in revenue by 2026. This value may multiply exponentially to $920 billion by 2030. With all these different applications for Lidar technology cropping up, it is possible that no one is capable of doing justice to the potential of the Lidar market. We haven’t yet touched on how the increasing adoption of artificial intelligence (AI) is likely to boost demand for lidar technology. For instance, AI and large language models (LLMs) improve the processing and analysis of Lidar data, increasing the technology’s accuracy and safety.
A woman reading and analyzing stock market data. Photo by Artem Podrez on Pexels
Our Methodology
To compile our list of the best Lidar stocks to buy, we first researched extensively to identify companies with significant exposure to LiDAR technology. We defined exposure in terms of manufacturing Lidar products or components, developing Lidar-related solutions, or integrating Lidar tech into other products. We then analyzed these companies based on their hedge fund holdings in Q3 2024. The finalists are stocks with the most hedge fund interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Best Lidar Stocks to Buy According to Hedge Funds
11. Hesai Group (NASDAQ:HSAI)
Number of Hedge Fund Holders: 3
Hesai Group (NASDAQ:HSAI) is a China-based designer and manufacturer of automotive lidar sensors. Although China is the company’s primary market, it has expanded to many locations worldwide, including the United States. Hesai uses most of its LiDAR sensors in its own units, which enabled it to deliver over 100,000 units in a single month in December 2024.
On February 11, 2025, Hesai Group (NASDAQ:HSAI) announced a major partnership expansion with BYD. BYD is one of the many homegrown Chinese EV makers whose products (EV cars) are on the streets of most major economies worldwide. The partnership involves Hesai supplying lidar sensors for more than 10 BYD models entering mass production in 2025. These sensors will make up the core of BYD’s next-generation “God’s Eye” ADAS. The system will be standard across all of BYD’s models.
Hesai Group (NASDAQ:HSAI) has seen remarkable growth thanks to China’s booming automotive lidar market. According to Gasgoo, total lidar installations in China exceeded 1.5 million units in 2024, more than double the volume in 2023. Hesai has secured over 100 design wins across 22 automotive manufacturers, including major players like Chery, Great Wall Motors, and Changan, as well as European and American OEMs’ joint ventures in China.
The company’s planned production capacity is expected to exceed 2 million units in 2025. As such, Hesai Group (NASDAQ:HSAI) is positioning itself to meet growing demand. The company’s new ATX LiDAR sensor, which offers powerful performance in a compact form factor, will enter mass production in Q1 2025. Multiple automakers have already selected the sensor for their production models.
10. Aeva Technologies, Inc. (NASDAQ:AEVA)
Number of Hedge Fund Holders: 5
You wouldn’t miss Aeva Technologies, Inc. (NASDAQ:AEVA) on the list of companies pushing the limits of lidar technology. This young company, founded in 2017 and listed last year, is already catching the eyes of institutional money. It develops what it calls 4D LiDAR sensors that can detect both position and instant velocity data.
Aeva Technologies, Inc. (NASDAQ:AEVA) was one of the headliners in the lidar niche at this year’s CES. The company took the opportunity to launch its latest 4D lidar sensor, Atlas Ultra. Atlas Ultra is designed for SAE Level 3 and 4 automated driving systems and provides up to three times the resolution of its predecessor. It also has configurable field views up to 150 degrees and a maximum detection range of 500 meters. The sensor’s 35% slimmer design makes it ideal for integration in passenger vehicles. In other words, Aeva Technologies is targeting the segment of autonomous vehicles that is likely to adopt lidar technology at a faster rate; that is, taxicab service providers such as Waymo.
The company is also aggressively pursuing autonomous truck technology. It recently partnered with Torc Robotics, a Daimler Truck subsidiary, to collaborate on this technology. Aeva estimates that this collaboration will enable the partners to commercialize autonomous trucks by 2027.
There has been substantial volatility in Aeva’s stock price in the past few weeks, but there is a steady recovery from the slump that happened just weeks after the IPO. The stock is up 41.96% in the past six months, and there is potential for a further rally. Craig-Hallum recently raised its price target on the stock from $5 to $6 while maintaining a “Buy” rating. According to the analysts, Aeva Technologies, Inc. (NASDAQ:AEVA) is entering a new phase of commercial progress with several recent wins. This is unlike most other lidar companies that have struggled this year.
9. MicroVision, Inc. (NASDAQ:MVIS)
Number of Hedge Fund Holders: 5
Headquartered in Redmond, Washington, MicroVision, Inc. (NASDAQ:MVIS) develops lidar-based products. The company’s leading brands are MAVIN™, MOVIA™, and MOSAIK™, which are mostly used in industrial and ADAS applications.
MicroVision, Inc. (NASDAQ:MVIS) is a small company if you judge by its quarterly revenue. In the most recent quarter (Q3 2024), the company generated $0.2 million, compared to $1.0 million in the same quarter last year. However, the amount of money lost from operations was reduced from $23.5 million to $15.5 million. The company’s effort to improve operational efficiency seems to be bearing fruits because the adjusted EBITDA loss in Q3 2024 narrowed to $11.7 million from $16.9 million in Q3 2023.
The good news is that MicroVision, Inc. (NASDAQ:MVIS) has a plan to strengthen its financial position. Last year, the company increased production capacity for the MOVIA L sensor in anticipation of increased demand from the industrial sector. The company partnered with ZF, a Tier-1 manufacturing entity, and the objective is to increase the output of sensors, which should ultimately reduce the average cost per sensor.
Meanwhile, MicroVision is working on securing more capital to support operations. It recently entered an agreement to raise $17 million and reduced its overall debt obligation by $12.3 million. Put simply, the company is making the necessary moves to create a conducive environment for growth. On February 10, D. Boral Capital initiated coverage of MicroVision, Inc. (NASDAQ:MVIS) shares with a “Buy” rating. However, the $1.33 price target suggests a 3.6% downside from the current level ($1.38).
8. Innoviz Technologies Ltd. (NASDAQ:INVZ)
Number of Hedge Fund Holders: 5
Innoviz Technologies Ltd. (NASDAQ:INVZ) supplies lidar sensors and perception software to auto manufacturers. The company kicked off the year on a high note after a successful presentation at 2025 International CES. It exhibited their latest lidar technology, which is already in use in BMW’s i7 and Volkswagen’s ID. Part of Innoviz’s presentation involved showing customers how its partnership with Mobileye has helped create one of the most accurate sensors for autonomous vehicles.
The company is also working with Nvidia to perfect its perception software. This software enhances autonomous driving, which is made possible by leveraging the NVIDIA DRIVE AGX Orin platform.
Omer Keilaf, CEO of Innoviz Technologies, commented on this partnership, saying:
“By leveraging the NVIDIA DRIVE Orin platform, we will be able to offer a powerful combination of cutting-edge lidar sensors and perception software, enabling automakers to scale from L2+ ADAS all the way to fully autonomous vehicles.”
On February 4, 2025, the company announced an operational optimization plan to accelerate its path to profitability. Part of the plan is to reduce the workforce by 9%, which should free up to $12 million every year.
Despite these developments, Innoviz’s stock is down 48% year-to-date (as of February 13, 2025). However, it is likely that the market is yet to appreciate the moves the company is making. This makes the stock a potential multi-bagger. No wonder Rosenblatt has a “Buy” rating on Innoviz shares with a price target of $4. This is a 360% upside based on the current price ($0.87).
7. Luminar Technologies, Inc. (NASDAQ:LAZR)
Number of Hedge Fund Holders: 10
Luminar Technologies, Inc. (NASDAQ:LAZR) is one of the three companies whose IPO in 2020 set in motion the lidar race. It was the second Silicon Valley firm working on the sensors for self-driving vehicles to go public. The company’s technology is used in Volvo’s EX90 electric SUV.
Besides the SUV, Luminar Technologies, Inc.’s (NASDAQ:LAZR) lidar technology is featured as standard equipment in several other Volvo cars. The company has another development contract with Toyota, whose technology will power the ADAS system in new cars.
Late last year, Luminar reorganized its top leadership. Michael Southard was appointed as VP of Engineering, and Alex Fishkin was appointed as Chief Legal Officer.
“We’re setting Luminar up for success in 2025 with leadership enhancements to help us achieve our two main goals for next year: strong growth and increased efficiency,” said Austin Russell, Founder and CEO.
Despite facing near-term industry headwinds, Luminar’s financial position is improving. The company’s Q3 2024 non-GAAP free cash flow improved by approximately $20 million compared to the previous quarter. This was a result of the recent cost-cutting actions, including headcount reductions in non-technical roles.
“Today, nearly every major automaker has LiDAR planned into their roadmaps,” noted Russell, emphasizing the company’s position in what he calls a “trillion-dollar industry.”
6. indie Semiconductor, Inc. (NASDAQ:INDI)
Number of Hedge Fund Holders: 12
indie Semiconductor, Inc. (NASDAQ:INDI) makes integrated circuits and software solutions and participates in the lidar market through partnerships. The company collaborates with SiLC Technologies to create a Frequency Modulated Continuous Wave (FMCW) lidar solution. Also, SiLC’s leading product, Eyeonic™ Vision Sensor, integrates indie’s Surya™ System on Chip (SoC).
Not much is going on for this company so far in 2025, but much happened last year that is still relevant today. For example, indie received ASIL-D certification from SGS-TÜV Saar in November 2024 for its new powertrain safety system. This is the highest safety level defined in ISO 26262.
Indie also enhanced its in-house capabilities for integrating, packaging, and testing photonics. This is a major move because it can now offer complete photonics sub-systems for rapid solution evaluation, pre-production validation, and low-volume production. In other words, the company expanded its revenue potential.
Late last year, the company announced a $190 million convertible notes offering due 2029. The notes will carry a 3.50% interest rate and be convertible to common stock at approximately $5.14 per share, a 27.5% premium. Nonetheless, these moves have not done much to catalyze the growth of the share price. Still, the company promises a lot, a view that is supported by analysts at UBS, who point to a 4% upside potential for the stock.
5. Ouster, Inc. (NASDAQ:OUST)
Number of Hedge Fund Holders: 13
Ouster, Inc. (NASDAQ:OUST) is one of the largest American companies that comes as close as possible to a pure-play LiDAR company. It develops and manufactures high-performance LiDAR sensors for several sectors, mostly automotive.
According to CEO Angus Pacala, the company reported record results in Q3 2024, thanks to the increased adoption of the REV7 sensors. Revenue increased by 26% year over year to $28 million, and the non-GAAP gross margin was 45%, compared to 33% in Q3 2023. Adjusted EBITDA loss also improved to $10 million from $18 million a year ago. More than 3,900 sensors were shipped during the quarter.
However, it appears that the company has yet to show what it can do in terms of revenue generated. In mid-January, Ouster, Inc. (NASDAQ:OUST) won a $2 million contract to deploy its traffic management solution in Chattanooga, Tennessee. A successful pilot has already been undertaken, and BlueCity, the traffic management solution, will now be installed across 120 intersections.
And the customer is already loving it. Chattanooga Mayor Tim Kelly commented on the project, saying:
“Using American lidar and advanced perception software from Ouster, we are building the largest lidar-powered smart traffic network in the United States. This technology will enable optimized traffic signal management on roads and intersections to improve traffic flow and provide data we can use to improve pedestrian safety.”
Ouster, Inc. (NASDAQ:OUST) can and will try to sell this technology to more cities across the country. If this happens, the company faces a horizon with unlimited revenue potential. This might also explain why the stock has been on a roll over the past year, gaining 81.47% in the past 12 months. Northland Capital Markets initiated coverage of Ouster shares with an “Outperform” rating. The target price is $10.96 per share—the current price (February 13) is just $1 shy of this target.
4. Allegro MicroSystems, Inc. (NASDAQ:ALGM)
Number of Hedge Fund Holders: 14
The magnetic sensors and power semiconductors on which lidar systems rely to function properly are some of Allegro MicroSystems, Inc.’s (NASDAQ:ALGM) leading products. You will also find them in electric vehicles, energy-efficient devices, and industrial automation systems.
Just recently, the company launched two new current sensor integrated circuits (ICs). These sensors deliver higher isolation in a 40% smaller footprint compared to existing 16-pin packages. One of the sensors – the ACS37030MY – offers five times faster response time than existing solutions, and it targets wide bandgap GaN devices. Ram Sathappan, the company’s Vice President of Global Marketing and Applications, commented on the new products:
“We’re excited to introduce our latest current sensor ICs, as Allegro continues to push the boundaries of sensor IC technology. Our newest sensors establish new standards for precision and reliability, empowering customers to overcome design and efficiency standards, while also demonstrating how our technology is driving a smarter, more efficient future.”
Moves like these are the reason Allegro MicroSystems is able to deliver on its financial commitments. The company introduced a record number of new magnetic sensing and power products to the market in Q3 2025, which is why it reported solid financials. In the quarter, total net sales reached $177.9 million. More than half ($130.1 million) of the revenue came from selling components to companies that develop LiDAR systems. The company’s leadership believes the positive trend will hold, and it expects the new sales for Q4 fiscal 2025 to range from $180 million to $190 million. They also expect the non-GAAP diluted EPS to increase to between $0.03 and $0.07.
3. FARO Technologies, Inc. (NASDAQ:FARO)
Number of Hedge Fund Holders: 17
FARO Technologies, Inc. (NASDAQ:FARO) is one of the few companies in a young industry. It provides 3D measurement and imaging solutions for industries like manufacturing and construction. Its technology is a core component of Lidar systems that power many self-driving vehicles across North America and China.
In Q3 2024, the company reported revenue at the upper end of the guidance range, at $82.6 million. At the same time, non-GAAP gross margin was 56.1%—the highest quarterly level since 2019. The adjusted EBITDA was $8.9 million, approximately 11% of sales, and the non-GAAP earnings per share came in at $0.21. The EPS beat analyst expectations by $0.18.
Although the revenue in the latest quarter is down almost 5% year over year, FARO Technologies, Inc.’s (NASDAQ:FARO) financial situation is solid. For example, EPS, as noted earlier, is up 950%, only second to EBITDA, which grew 994% from Q2 2024. And the market is noticing. The stock declined most of 2024 but turned around late in the year. Right now, it has gained 37% in the past 12 months and 88% in the past six months.
The solid financial performance is due to several strategic decisions the company has made recently. For example, FARO Technologies, Inc. (NASDAQ:FARO) launched the new FARO Leap ST handheld scanner in late January. The scanner has five operating modes, including ultra-fast scanning and photogrammetry.
The launch came after FARO Technologies signed a 6-figure licensing deal with Royal BAM Group. Royal BAM Group is the largest construction company in the Netherlands, and it obtained the license to use Sphere XG software, one of FARO Technologies’ leading products. During the latest earnings call, Peter Lau, CEO of FARO, said with regard to this product: “Our Sphere XG offering since we launched it last year in Q4 has been a tailwind for us. It’s being adopted fairly regularly by our customers and not just customers that buy software only, but customers that buy software as a part of our hardware solutions.” In a recent report, Craig-Hallum’s Greg Palm maintained a “Buy” rating on the company’s stock with a price target of $36.
2. Trimble Inc. (NASDAQ:TRMB)
Number of Hedge Fund Holders: 36
Trimble Inc. (NASDAQ:TRMB) develops hardware and software solutions for advanced positioning systems. The products integrate Lidar, GPS, and other sensors to enable precise positioning and mapping across various industries. Its leading product, the ProPoint Go™ platform, allows autonomous vehicles to navigate up to a centimeter-level accuracy.
The company reported $875.8 million in third-quarter 2024 revenue, which was 3% organic growth. Annualized recurring revenue reached $2.19 billion, 13% more than the same quarter in the previous year (14% organic growth). Other highlights include a record gross margin of 68.5% and adjusted EBITDA of $237.4 million (27.1 % of revenue).
On January 06, Trimble announced that it would integrate its precise positioning engine, Trimble ProPoint Go™, with Qualcomm’s Snapdragon Auto 5G Modem-RF Gen 2. The improved product will be sold to automated and autonomous vehicles, mostly automotive OEMs. It will help increase positioning accuracy and potentially improve current self-driving capabilities. The solution will also enhance advanced driver assistance systems (ADAS).
A few weeks later (February 10), the company signed a deal with Platform Science to acquire Trimble’s global transportation telematics business units. This strategic investment makes Trimble a shareholder in Platform Science’s expanded business and gives it a seat on the board. These are some of the developments that explain why the stock has gained close to 40% over the past six months. Wolfe Research recently upgraded Trimble to “Outperform” with a $90 price target, suggesting growing confidence in the company’s strategic direction.
1. Teledyne Technologies Incorporated (NYSE:TDY)
Number of Hedge Fund Holders: 39
Teledyne Technologies Inc. (NYSE:TDY) is a holding company with interests in various high-tech sectors. One of these is the Lidar market, where it operates via a subsidiary called Teledyne Optech. Other subsidiaries, like Teledyne Geospatial, borrow from Teledyne Optech and Teledyne CARIS (which develops the software that supports LiDAR hardware) to create advanced lidar and sonar solutions.
Imarc ranks Teledyne Technologies as the ninth largest Lidar company in the world, ahead of giants like Trimble Inc. (NASDAQ:TRMB). It is also one of the oldest players in the market—Teledyne Optech was established in 1974. The key products include ALTM Galaxy, Lynx Mobile Mapper, and ILRIS.
Teledyne Technologies recently reported Q4 2024 results, and it’s clear that the Lidar segment is performing well. The digital imaging segment (under which lies the Lidar department) reported $822.2 million in net sales, an increase of 2.5% compared to Q4 2023. Most of the sales came from unmanned air systems, surveillance systems, and commercial infrared imaging systems.
The company’s approach to the Lidar market is quite different from pure-play competitors. Rather than focusing solely on one aspect, the company has different subsidiaries that focus on a specific element and then have another combine different elements to create a complete product. For example, Teledyne Geospatial recently showcased its latest product called Fathom at Geo Week. Fathom is a fast and intuitive airborne coastal mapping solution that combines technology from Teledyne CARIS and Teledyne Optech. TD Cowen recently adjusted Teledyne Technologies’ share price target from $500 to $550 and kept the “Buy” rating.
While we acknowledge the potential of Teledyne Technologies Inc. (NYSE:TDY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TDY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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