The financial world was abuzz last week with anticipation for Tesla‘s (TSLA) highly anticipated “We, Robot” event. We were promised a look at the future of self-driving vehicles… a glimpse into Elon Musk’s vision for a world transformed by autonomous cars.
Except it didn’t go as planned.
Sure, the sleek designs of the Cybercab and Cybervan were exciting. The dancing Optimus robots were impressive. But where were the details? When would these vehicles be available? How would they win over cautious regulators?
Investors were left with more questions than answers, and TSLA stock fell 10% the next morning.
Many are now proclaiming that the robotaxi revolution is nothing but hype… another case of Elon Musk overpromising and underdelivering. But here at Today’s Top Stocks, we think that’s a mistake. The self-driving car revolution is coming. It might not happen as quickly as Musk wants – or in the exact way he envisions – but the technology is here. And the opportunity for early investors is still massive.
Here are 5 stocks poised to skyrocket as the AV revolution takes over.
Alphabet (GOOG)
Let's face it: Alphabet’s Waymo is winning the race for robotaxi dominance. While Tesla was still fine-tuning its PowerPoint presentation, Waymo was already completing more than 100,000 driverless rides per week in cities across the United States.
In fact, my colleague Luke Lango wrote about his own experience using Waymo’s driverless taxi service in Phoenix just a few weeks ago. He found the technology to be incredibly safe and surprisingly affordable– even cheaper than Uber or Lyft.
Waymo’s success is undeniable. And as the company expands into more cities in 2025, its revenue (and stock price) is likely to soar.
Baidu (BIDU)
The AV revolution isn't just happening in the US. In fact, China is arguably ahead of the curve in this arena. And Baidu – the Chinese tech giant known for its dominant search engine – is a major player in China's self-driving car scene.
Like Waymo, Baidu's robotaxi service, Apollo Go, is already a real business. The company is completing more than 100,000 driverless rides per week across several Chinese cities, and even operates a fleet of fully autonomous buses.
The Chinese government is actively supporting the development of self-driving cars, creating a regulatory environment that is arguably more favorable for AVs than in the US. Baidu is uniquely positioned to capitalize on this trend in the world's largest car market, making it a must-have stock for any serious AV investor.
Mobileye (MBLY)
While Tesla likes to keep things in-house, other companies are choosing the power of partnerships. And Mobileye – a global leader in advanced driver-assistance systems (ADAS) and autonomous driving technologies – is a top partner for major automakers.
In fact, Mobileye's technology is used by more than 50 automakers, including BMW, Ford, and Volkswagen. Plus, this company isn’t just about providing software and sensors. Mobileye is also focused on developing its own self-driving ride-hailing service, set to launch in Germany later this year.
My colleague Luke Lango sees MBLY as a prime example of a supplier poised to benefit from the robotaxi boom. Even if Tesla wins the robotaxi race, it’s likely to need Mobileye's cutting-edge technology to get there.
Aurora (AUR)
Want to invest in self-driving trucks before this megatrend goes mainstream? Then take a look at Aurora. This company is a leading developer of autonomous trucking technology, with partnerships with major players in the transportation industry, including Uber Freight and Paccar (PCAR), the parent company of the Kenworth and Peterbilt truck brands.
Aurora is on track to launch fully autonomous truck routes by the end of 2025, starting in Texas and Arizona. This company is perfectly positioned to profit from this upcoming revolution in logistics, and its stock price should surge alongside this growth.
Ambarella (AMBA)
Sensors are the “eyes” of self-driving cars… and Ambarella is one of the top designers of those “eyes.” This company is a leading supplier of high-resolution video processing chips and artificial intelligence (“AI”) technology, specializing in the fast-growing auto market.
In fact, Ambarella's advanced image processing and AI capabilities will be critical to creating future robtaxis and self-driving vehicles. The company’s technology will enable these autonomous vehicles to see and to think, making safer and more efficient self-driving capabilities possible.
As the robotaxi revolution gains momentum, Ambarella's business is likely to flourish, potentially pushing the stock price to new all-time highs.
Time to Take Action
Now is the time to position yourself for the massive profits as the AV industry continues to grow. There will be winners and losers, of course. But the companies mentioned above all stand to benefit.
To learn more about the upcoming robotaxi revolution – and how you can profit – be sure to download our free report on the five stocks we see as most likely to explode higher with this megatrend.
And be sure to come back tomorrow when we’ll be highlighting five “under-the-radar” space stocks that could deliver massive gains in the race for space dominance.
