15 AI Stocks That Are On Sale

3. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 38

Expected Earnings Growth: 28.4%

P/E Ratio: 11.8

Aptiv PLC (NYSE:APTV) is an automotive parts company. It is based in Ireland. The company has been deploying AI and ML in its offerings, and it thus offers critical technologies for vehicle safety and security, such as autonomous driving tech, sensing and perception systems, and vehicle connectivity systems.

With the rise of EVs, connected vehicles, and a focus on software and digitalization in the automotive industry, Aptiv PLC (NYSE:APTV) is expected to see its business grow exponentially as more consumers gravitate towards advanced driver assist systems (ADAS).

Considering the immense growth potential of Aptiv PLC (NYSE:APTV) as more drivers and businesses switch to electric or hybrid vehicles, many investors are beginning to see the intrinsic value of this stock, which is not reflected by its share price as of now. As a result, Aptiv PLC (NYSE:APTV) is beginning to be considered one of the cheapest automotive players in the AI space this year.

There were 38 hedge funds long Aptiv PLC (NYSE:APTV) in the second quarter, with a total stake value of $1.03 billion.

ClearBridge Investments mentioned Aptiv PLC (NYSE:APTV) in its first-quarter 2024 investor letter:

“Stock selection in the consumer discretionary sector was the leading detractor from relative performance, driven by idiosyncratic issues within a handful of holdings. Automotive parts supplier Aptiv PLC (NYSE:APTV) faced pressure as headwinds to the broader auto-cycle and a slowing in electric vehicle adoption weighed on margins. However, we believe that the company’s above-market growth, combined with opportunity for margin expansion, are compelling at its current valuation as the auto-cycle rebounds.”