In this article, we will take a look at the 5 best self-driving car stocks to invest in. For more stocks, head on over to 14 Best Self-Driving Car Stocks To Invest In.
5. Apple Inc. (NASDAQ:AAPL)
No of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) first expressed interest in self-driving cars in 2017, with CEO Tim Cook referring to it as “the mother of all AI projects.” While Apple Inc. (NASDAQ:AAPL) scaled back its Apple Car project in 2022, the company is still exploring advanced autonomous vehicle technology. Apple Inc. (NASDAQ:AAPL) has also been in talks with various automakers, such as Kia, General Motors and LG, for a collaboration on this project.
Here’s what Fred Alger Management said about Apple Inc. (NASDAQ:AAPL) in its Q1 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications, computing, and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives particularly tight engagement with consumers and enterprises, which is fostering the growing purchase of high margin services like music, apps, and Apple Pay. While iPhone sales were down year-over-year (YoY). services revenues grew 7% YoY which was slightly above analyst estimates. Company earnings were also better-than-anticipated due to lower input costs, such as memory chips and cost control initiatives. Aside from production disruptions, negative sentiment had also weighed on shares as investors questioned how an economic slowdown would affect consumer demand for Apple products in 2023. However, management projected an acceleration in earnings for the fiscal first quarter, where they noted that iPhone and services growth should remain strong, along with encouraging impacts around product mix, lower input costs, and continued cost controls.”
4. NVIDIA Corporation (NASDAQ:NVDA)
No of Hedge Fund Holders: 132
NVIDIA Corporation (NASDAQ:NVDA) is a California, United States-based software company known for providing advanced artificial intelligence solutions.
At the end of Q1 2023, 132 hedge funds reported owning a stake in NVIDIA Corporation (NASDAQ:NVDA), up from 106 in the preceding quarter. GQG Partners held a stake worth over $2.29 billion in the company during the first quarter of the year.
Here’s what Fred Alger Management said about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put. Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. As such, we believe Nvidia is a long-term high unit volume growth opportunity. During the period, NVIDIA reported fiscal fourth-quarter results that met expectations, as the company navigated. through an inventory correction associated with the broad macroeconomic slowdown. Moreover, management gave fiscal year earnings guidance that was better than analyst estimates. noting strong year-over-year growth in gaming and data centers. Management’s constructive assessment of 2023 prospects. coupled with the rapid rollout and adoption of generative Al offerings, led to positive share price performance.”
3. Uber Technologies, Inc. (NYSE:UBER)
No of Hedge Fund Holders: 144
Uber Technologies, Inc. (NYSE:UBER) is actively engaged in several initiatives to explore autonomous technology and services. In Houston, Texas, as well as in Los Angeles and Mountain View, California, Uber Technologies, Inc. (NYSE:UBER) is conducting tests for autonomous delivery services. These tests involve using all-electric sidewalk robots and autonomous cars to deliver food to the local community. Furthermore, Uber Technologies, Inc. (NYSE:UBER) is running a pilot program in Las Vegas, where customers have the opportunity to ride an all-electric autonomous vehicle.
Uber Technologies, Inc. (NYSE:UBER) was mentioned in the Q1 2023 investor letter of RiverPark Advisors. Here’s what the firm said:
“Uber Technologies, Inc. (NYSE:UBER): Uber was a top contributor in the quarter following better-than-expected 4Q results and 1Q guidance. Gross Bookings grew 19% year over year to $31 billion, driven by 31% Mobility Gross Bookings growth and 6% Delivery Growth Bookings growth. 4Q Adjusted EBITDA of $665 million, up $579 million year over year, significantly beating management’s $600-$630 million guidance. Management guided to continuing growth in 1Q for Gross Bookings (20%- 24% growth) and Adjusted EBITDA (of $660-$700 million).
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now solidly profitable with the potential for substantial margin expansion and free cash flow generation to come. 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 131 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as package and grocery delivery, travel, truck brokerage (the company had $1.5 billion in Freight revenue for 4Q22), and worker staffing for shift work. Given its $4 billion of unrestricted cash and $5 billion of investments, the company today has an enterprise value of $70 billion, indicating that UBER trades at 1.6x next year’s estimated revenue.”
2. Alphabet Inc. (NASDAQ:GOOG)
No of Hedge Fund Holders: 204
Alphabet Inc. (NASDAQ:GOOG) has been venturing into the autonomous vehicle space through its subsidiary Waymo. The company’s self-driving project has made significant progress in its pursuit of launching a commercial ride service in Los Angeles. In February, it was revealed that Waymo is removing human safety drivers from its robotaxi test fleet and is going completely driverless.
Vulcan Value Partners shared its stance on Alphabet Inc. (NASDAQ:GOOG) in its Q1 2023 investor letter. Here’s what the firm said:
“Additionally, Skyworks Solutions, Amazon, Alphabet Inc. (NASDAQ:GOOG), KKR & Co., and TransDigm Group were all material contributors during the quarter. We have discussed these companies at length in prior letters. Alphabet reported mixed results in a tough environment. The company is working to adjust its cost structure in light of the current macroeconomic environment. All of these companies are executing well, their theses are intact, and we are pleased to own them at a discount to our estimate of intrinsic value.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
No of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ:AMZN) has been working on developing an autonomous vehicle through its self-driving unit, Zoox. In February, Zoox revealed that the company has successfully tested its robotaxi technology on public roads. The Amazon.com, Inc. (NASDAQ:AMZN) subsidiary holds the distinction of being the only purpose-built robotaxi with permission to run on public roads in California.
Here’s what Vulcan Value Partners said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2023 investor letter:
“Additionally, Skyworks Solutions, Amazon.com, Inc. (NASDAQ:AMZN), and TransDigm Group were all material contributors during the quarter. We have discussed these companies at length in prior letters. Despite slowing growth and macro headwinds, Amazon experienced revenue growth in all three segments: AWS, Advertising, and Retail. Amazon is also addressing its cost structure to better align with its slower growth rates. We believe Amazon is a dominant, world-class company with powerful secular tailwinds. All three of these companies are executing well, their theses are intact, and we are pleased to own them at a discount to our estimate of intrinsic value.”
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