In this piece, we’ll take a look at the 5 Best Autonomous Vehicle Stocks To Invest In. For more such companies, go to 11 Best Autonomous Vehicle Stocks To Invest In.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 80
QUALCOMM Incorporated (NASDAQ:QCOM) is a world leader in the commercialization and development of wireless technologies. The company creates semiconductors, software, and wireless technology-related services. The technologies and solutions developed by the company are utilized in industries or applications such as automotive and the internet of things. QUALCOMM Incorporated (NASDAQ:QCOM) Snapdragon Ride Vision System is a new open, modular computer vision and scalable software stack designed for the optimized implementation of surround and front cameras for advanced driver assistance systems and automated driving.
On November 2, 2022, QUALCOMM Incorporated (NASDAQ:QCOM) reported its Q4 2022 result, reporting revenue of $11.39 billion, beating market estimates by $19.96 million. The company’s Normalized EPS stood at $3.13, meeting market expectations.
At the end of Q3 2022, 80 hedge funds in Insider Monkey’s database were long on QUALCOMM Incorporated (NASDAQ:QCOM) at the end of the quarter. Matrix Capital Management remained the leading stakeholder of the company at the end of Q3 2022.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 88
Tesla, Inc. (NASDAQ:TSLA) is an American automobile company headquartered in Austin, Texas. Tesla, Inc. (NASDAQ:TSLA) designs, develops, produces, and sells high-performance electric vehicles, energy-producing and storage systems, and provides services tied to its sustainable energy products. Tesla Autopilot is a set of advanced driver-assist systems with features such as lane centering, automated lane changes, traffic-aware cruise control, self-parking, and the ability to call the car from a garage or parking place.
On December 20, 2022, Vijay Rakesh, an analyst at Mizuho, reduced his price target on Tesla, Inc. (NASDAQ:TSLA) to $285 while keeping a Buy rating on the stock. According to the analyst, the electric vehicle market will continue to grow, although high prices and a challenging environment can become a hurdle.
As per Insider Monkey’s database, 88 hedge funds owned stakes in Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter. ARK Investment Management remained the leading stakeholder of the company at the end of Q3 2022.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:
In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic; second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.
Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 89
NVIDIA Corporation (NASDAQ:NVDA) is a software and fabless company that creates graphic processing units, application programming interfaces for data science and high-performance computing, and system-on-a-chip units for the automotive and mobile computing sectors. Nvidia Drive automotive solutions are a collection of hardware and software components for autonomous car designers and manufacturers. In September 2022, NVIDIA Corporation (NASDAQ:NVDA) launched DRIVE Thor, a next-generation centralized computer for safe and secure autonomous automobiles.
On December 19, 2022, Rajvindra Gill, an analyst at Needham, increased his price target on NVIDIA Corporation (NASDAQ:NVDA) to $230 while keeping a Buy rating on the stock. The analyst believes NVIDIA Corporation (NASDAQ:NVDA)’s customers are upgrading to the most recent H100 architecture even though he anticipates turbulence in the entire data center industry in 2023.
According to Insider Monkey’s database, 89 hedge funds held shares of the company at the end of the third quarter of 2022. Fisher Asset Management was the most bullish fund on the company’s stock at the end of Q3 2022.
Here is what ClearBridge Investments had to say about NVIDIA Corporation (NASDAQ:NVDA) in its third-quarter 2022 investor letter:
Likewise, graphics chip maker NVIDIA Corporation (NASDAQ:NVDA) (-19.9%) has struggled through the post-COVID-19 recovery but maintains dominant positions in key secular growth markets of AI and gaming. The company has significantly underperformed the index and semiconductor peers recently due to a gaming inventory correction, a decline in aggregate cryptocurrency demand and reduction in crypto mining intensity as well as concerns around the sustainability of data center sales.
We tactically trimmed our position early in 2022 due to concerns around these cycle dynamics but remain confident in the company’s long-term prospects.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 140
Apple Inc. (NASDAQ:AAPL) is a global technology company that creates, manufactures, and sells smartphones, personal computers, tablets, wearable devices, accessories, and associated services. Apple Inc. (NASDAQ:AAPL)’s Project Titan is focused on building fully autonomous vehicles.
On December 12, 2022, Martin Yang, an analyst at Oppenheimer, reduced his price target on Apple Inc. (NASDAQ:AAPL) to $170 while keeping an Outperform rating on the stock. The reduced outlook is due to the loss of iPhone demand in the second quarter of 2023 due to supply chain problems. However, the analyst believes that China’s zero-COVID policy will help accelerate iPhone capacity recovery in Zhengzhou.
As per Insider Monkey’s proprietary database, 140 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL), as of the end of the third quarter. Berkshire Hathaway was the biggest stakeholder in the company’s stock at the end of Q3 2022.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 196
Alphabet Inc. (NASDAQ:GOOGL) is a multinational technology company based in the United States. It is divided into three business units: Google Services, Google Cloud, and Other Bets. Waymo LLC is a California-based autonomous driving technology company that is owned by Alphabet Inc. (NASDAQ:GOOGL).
On November 23, 2022, Andrew Boone, an analyst at JMP Securities, reduced his price target on Alphabet Inc. (NASDAQ:GOOGL) to $132 while keeping an Outperform rating on the stock. The analyst is expecting a recovery of digital advertising by the third quarter of next year.
196 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. TCI Fund Management had the biggest long position in the company at the end of Q3 2022.
You can also take a look at 11 Best Medical Technology Stocks To Buy and 15 Best Affordable Stocks To Buy Now.
