We recently compiled a list of the 11 Best Self-Driving Car Stocks to Buy According to Analysts. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other self-driving car stocks.
The term “self-driving car stocks” describes publicly traded businesses engaged in creating, manufacturing, or using autonomous vehicle technology. These businesses either directly contribute to the development of self-driving systems or offer crucial parts and services to the autonomous driving industry.
The autonomous vehicle market is booming. Grand View Research estimates that the global market for autonomous vehicles was worth $68.09 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 19.9% from 2025 to 2030. The industry is driven by the significant demand for tech adoption by customers, road safety, connectivity, advancements in AI, and sensor technology. In 2024, the passenger vehicle segment led the industry and accounted for 69% of the global revenue. The North American autonomous vehicle market dominated the global market with a share of over 37.1% in 2024.
On the other hand, according to Goldman Sachs Research, Level 3 autonomous cars, which permit hands-off, eyes-off driving in some situations, might make up as much as 10% of new cars sold globally by 2030, down from a previous estimate of 12%. It is anticipated that level 4 fully autonomous vehicles will account for 2.5% of sales, up from 3.5% in the past. Vehicles classified as Level 2 and Level 2+, which need to be supervised, are projected to rise from 20% at present to 30% by 2027. Adoption is expected to speed up due to AI advancements and declining hardware prices, notwithstanding delays caused by technological, legislative, and business model obstacles. By 2030, a market for robotaxis valued at over $25 billion would develop, driven by commercial AV fleets. By 2030, the cost of an AV mile might be less than $1, and by 2040, it could be $0.58. Long-term, AVs may account for 60% of new light vehicle sales worldwide by 2040, with China dominating (90%), followed by Europe (80%), and the United States (65%).
As per S&P Global’s report, the industry’s focus on self-driving cars has changed from lofty Level 5 autonomy to practical, incremental applications. Tech firms and manufacturers came together at CES 2025 with realistic objectives, especially in the area of Level 4 autonomy. Companies increasingly prefer deployable technology, such as ride-hailing services and automated shuttles, above completely autonomous personal vehicles. Leading this shift is Waymo, which reports more than 4 million trips overall and 150,000 paid rides weekly. It displayed new Hyundai and Zeekr automobiles, growing its business in additional American cities and adjusting to local laws. These actions show ride-hailing’s scalability in light of the present limitations.
Meanwhile, conventional automakers showcased autonomous shuttle concepts, while Level 2+ and Level 3 ADAS systems continue to be used in consumer vehicles. As startups with specialized inventions, like AI chips or sensor software, work with larger companies that have the resources and manufacturing capacity, partnerships are growing. Smaller players struggle to operate on their own because of high R&D expenses and regulatory complexity. As the market transitions from hype to practical implementation, Level 4 geo-fenced applications and delivery systems are expected to be the next big thing. The autonomous future is increasingly defined by gradual, cooperative progress rather than disruptive leaps.
Methodology
For this list, we thoroughly reviewed reputable sources and compiled an initial list of 20 self-driving stocks. Then we selected the 11 stocks that had the highest upside potential as of April 22, 2025. We have only included stocks in our list with an upside potential of 14% or higher. The stocks are ranked in ascending order of the upside potential.
Note: Not every company included in the list is solely focused on self-driving technology. Some of the stocks highlighted below are involved indirectly by investing in businesses that specialize in autonomous driving.
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).
QUALCOMM Incorporated (NASDAQ:QCOM)
Analysts’ Upside Potential as of April 22: 40.22%
QUALCOMM Incorporated (NASDAQ:QCOM) is well-known for producing electronic components that are present in practically all smartphones. Nonetheless, the firm’s expertise in mobility chips is reviving in the auto industry. The Snapdragon Digital Chassis is a complete platform that drives ADAS, computing, and vehicle communication.
QUALCOMM Incorporated (NASDAQ:QCOM) recently purchased Arriver, a self-driving car software company that was previously part of auto supplier Veoneer, to help hasten the development of a vehicle autonomy platform, making it one of the Best Autonomous Driving Stocks.
The company achieved remarkable achievements in fiscal Q1 2025, as revenue grew to $11.7 billion, a 17.6% rise over the same time the previous year. This set a new record for QUALCOMM Incorporated (NASDAQ:QCOM) and was the third consecutive quarter of double-digit sales growth. The QCT business, which comprises core chip activities, generated $10.1 billion, a 20% jump from the previous year. Notable factors that contributed to this gain were the 61% increase in automotive revenue to $961 million, the 36% gain in IoT-related sales to $1.5 billion, and the 13% surge in smartphone chip sales to $7.6 billion.
At the end of the quarter, the company’s cash and cash equivalents were over $3.1 billion. Furthermore, it generated operating cash flow of almost $4.6 billion and paid dividends to stockholders of $942 million. For the past 21 years, the firm has been paying out increasing dividends to its stockholders.
Overall, QCOM ranks 3rd among the 11 Best Self-Driving Car Stocks to Buy According to Analysts. While we acknowledge the potential of QCOM 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than QCOM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
