In this article, we discuss the 11 best autonomous vehicle stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 11 Best Autonomous Vehicle Stocks To Buy Now.
5. Nvidia Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 86
Nvidia Corporation (NASDAQ:NVDA) ranks fifth on the list of 11 best autonomous vehicle stocks to buy now. The company is primarily engaged in the design and manufacturing of graphics processing units for the gaming and professional market. On top of this, the company also develops complete end-to-end solutions for safer, more efficient transportation, including data center infrastructure, software toolkits, libraries, and frameworks.
By the end of the second quarter of 2021, 86 hedge funds tracked by Insider Monkey held stakes in Nvidia Corporation (NASDAQ:NVDA) worth approximately $9.09 billion, up from 80 hedge funds in the previous quarter with a total stake value of roughly $6.20 billion.
Harding Loevner mentioned Nvidia Corporation (NASDAQ:NVDA) in its Q2 2021 investor letter:
“Within IT, shares of US-based computer chip developer NVIDIA continued their climb as rising demand across segments-from work-from-home laptops to data centers to cryptocurrency mining rigs-led to shortages that translated into surging prices for its chips. Such was the windfall that NVIDIA even made technical changes to some of its products to make them towards waht it believes are more sustainable uses. Less attractive to cryptocurrency miners, to steer scarce supply viewed by geography, the lion’s share of excess returns came from good stock performance in the US. In addition to the contributions from NVIDIA and our health care holdings, a pair of IT software and service providers also aided relative returns.”
4. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 86
General Motors Company (NYSE:GM) through its majority-owned subsidiary Cruise is expected to start production of the company’s first driverless vehicle in early 2023.
By the end of the second quarter of 2021, 86 hedge funds tracked by Insider Monkey held stakes in General Motors Company (NYSE:GM) worth approximately $7.41 billion. In line with the previous quarter with 86 stakes and a total stake value of roughly $8.05 billion.
3. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 135
In 2020, Uber Technologies, Inc. (NYSE:UBER) invested $400 million in the self-driving company Aurora. The company is expected to license Aurora’s manufacturing technology.
On September 13th, Goldman Sachs analyst Eric Sheridan initiated coverage on Uber Technologies, Inc. (NYSE:UBER) with a Buy rating and a $64 price target. The analyst believes that given the company’s magnitude of user and economic capture, it may be the next large-cap platform ecosystem.
By the end of the second quarter of 2021, 135 hedge funds tracked by Insider Monkey held stakes in Uber Technologies, Inc. (NYSE:UBER) worth approximately $10.41 billion.
RiverPark Funds mentioned Uber Technologies, Inc. (NYSE:UBER) its its Q2 2021 investor letter:
“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing, with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (64% of 1Q21 revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.
UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 190
Ranking second on the list of 11 best autonomous vehicle stocks to buy now is Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL) is notable for its multinational internet-related services and products.
The company operates its autonomous vehicles segment through its sibling company Waymo. Earlier this year, Waymo raised $2.5 billion in an investment round to develop its autonomous driving technology.
On October 1st, RBC Capital analyst Brad Erickson initiated coverage on Alphabet Inc. (NASDAQ:GOOGL) with an Outperform rating and a $3,400 price target. The analyst mentioned his bullish checks on the company’s core search business’s long-term pricing potential, as well as YouTube’s market share gains.
Mawer Investment Management mentioned Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2021 investor letter:
“Many higher growth companies reported strong results amid the pick-up in broad economic activity including Alphabet. These higher growth companies tend to have increased sensitivity to a change in discount rates and were supported as long-term interest rates stabilized over the period.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 238
Topping the list of 11 best autonomous vehicle stocks to buy now is Microsoft Corporation (NASDAQ:MSFT). Microsoft is known for its computer software, consumer electronics, and personal computers. The company was founded in 1975 and based in Washington.
Microsoft Corporation (NASDAQ:MSFT) entered a partnership with Volkswagen Group wherein the company will produce a dedicated cloud-based platform for future autonomous car systems.
On September 17th, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) and raised the price target to $366 from $303 per share.
By the end of the second quarter of 2021, 238 hedge funds tracked by Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT) worth approximately $62.46 billion.
You can also take a peek at 10 Best EV Stocks To Buy Now and 10 Best EV Startups to Watch
