Autonomous vehicle, or AV, technology is generally considered a can’t-miss, long-term investment. Several companies have already launched fully AV services for the public in a handful of cities in the U.S. and around the world, and those services are growing and expanding rapidly. Investors who bet on early AV market leaders could be handsomely rewarded. However, the AV industry is wide open, and the technology is still a long way from perfection. Bank of America has listed AV technology as a key theme in the tech space.
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Here are some of the firm’s top AV technology stocks to buy in 2023:
| Stock | Implied upside over April 12 closing price |
| Alphabet Inc. (ticker: GOOG, GOOGL) | 19.5% |
| Nvidia Corp. (NVDA) | 17% |
| Qualcomm Inc. (QCOM) | 24.7% |
| Advanced Micro Devices Inc. (AMD) | 6.1% |
| Uber Technologies Inc. (UBER) | 43.8% |
| Baidu Inc. (BIDU) | 71.6% |
| General Motors Co. (GM) | 102.2% |
Alphabet is the parent company of Google and YouTube and is a global leader in online advertising. Alphabet subsidiary Waymo already offers fully driverless rides in San Francisco and Phoenix, and plans to add service in Los Angeles. Bank of America analyst Justin Post says Alphabet is highly exposed to several high-growth tech trends, including internet search, cloud computing and artificial intelligence
. Post says growth in mobile device usage, video streaming and connected automobiles and other devices will be long-term tailwinds. Bank of America has a “buy” rating and $125 price target for GOOGL stock, which closed at $104.64 on April 12.
Nvidia Corp. (NVDA)
Nvidia is a semiconductor company that develops graphics cards and mobile processors used in personal computers, wireless devices and workstations. Nvidia also offers hardware, software and sensor packages for AVs via its DRIVE platform. The company is a diversified play on AV technology, and analyst Vivek Arya says its unique pipeline of AI technology also contributes to its massive total addressable market. Bank of America has a “buy” rating and $310 price target for NVDA stock, which closed at $264.95 on April 12.
Qualcomm Inc. (QCOM)
Qualcomm is a semiconductor company that develops products based on its advanced wireless broadband technology. Auto companies have adopted Qualcomm’s Snapdragon Ride platforms to produce safe and scalable advanced driver-assistance systems and AV solutions. First-generation Snapdragon Ride systems are already being used in commercial vehicles around the world. The semiconductor industry has been volatile in recent quarters, but analyst Tal Liani says market expectations for Qualcomm have likely bottomed, setting the stock up to outperform in coming months. Bank of America has a “buy” rating and $150 price target for QCOM stock, which closed at $120.27 on April 12.
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Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up more than 800% in the past five years, making it one of the best-performing large-cap tech stocks in the market. The AMD Automotive platform helps power advanced autonomous systems that require extremely high-speed data aggregation, pre-processing and distribution. In November 2022, Japanese automotive component company Aisin Corp. (ASEKF) selected the AMD Xilinx Automotive Zynq UltraScale+ MPSoC platform to power its automated parking-assist system. Arya says AMD is also a top stock pick in AI and cloud services technology. Bank of America has a “buy” rating and $98 price target for AMD stock, which closed at $92.33 on April 12.
Uber Technologies Inc. (UBER)
Uber operates a leading ride-sharing and delivery services platform. In December 2022, Uber and partner Motional launched a self-driving taxi service in Las Vegas with plans to expand to Los Angeles in the future. In the long term, Uber may rely more heavily on AV technology to help reduce its reliance on its large, expensive fleet of independently contracted drivers — a move that can reduce regulatory risks and labor costs. Post says Uber is a growth leader among large-cap tech stocks. Bank of America has a “buy” rating and $44 price target for UBER stock, which closed at $30.59 on April 12.
Baidu Inc. (BIDU)
Baidu is the leading Chinese internet search provider. The company also has several other businesses, such as its majority stake in streaming-video platform iQiyi Inc. (IQ) and its AI and cloud businesses. Baidu currently operates autonomous ride-hailing services in Beijing, Wuhan and Chongqing, and it has accumulated more than 31 million miles of autonomous testing data at Level 4 — meaning the car can operate without driver input but requires a preloaded map to function. Analyst Eddie Leung says Baidu has several large growth drivers, including AI cloud services, chatbots, AV technology and smart devices. Bank of America has a “buy” rating and $234 price target for BIDU stock, which closed at $136.40 on April 12.
General Motors Co. (GM)
General Motors is the largest U.S. manufacturer of cars and trucks by total sales. GM subsidiary Cruise is already offering AV services to the public in San Francisco, Austin and Phoenix. In March, the company announced it has accumulated more than 1 million driverless miles on public roads since it first began testing its AVs in San Francisco in November 2021. Analyst John Murphy says GM is a leader in the transition to the electric and autonomous future of the auto industry. Bank of America has a “buy” rating and $70 price target for GM stock, which closed at $34.62 on April 12.
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Top 7 Autonomous Vehicle Stocks to Buy Now originally appeared on usnews.com
Update 04/13/23: This story was published at an earlier date and has been updated with new information.
