In this article, we will be looking at the 5 best self-driving car stocks to invest in. To see our detailed analysis on the electric vehicle industry and its growth potential, you can go directly to the 10 Best Self Driving Car Stocks to Invest In.
5. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 80
NVIDIA Corporation (NASDAQ: NVDA) is a visual computing company operating worldwide and manufacturing technology used in electric and autonomous vehicles. The company ranks 5th on our list of the best self driving car stocks to invest in.
On June 28th, NVIDIA Corporation (NASDAQ: NVDA) announced their partnership with Google Cloud for an AI-on-5G Innovation Lab, while Citigroup analysts also raised their probability estimates for the company’s $40 billion ARM deal to go through from 10% to 30%. Wells Fargo upped the price target for the stock to $875 this month as well, retaining their Overweight rating, in light of NVIDIA Corporation’s (NASDAQ: NVDA) AI expansion. In their fiscal first quarter of 2022 report, NVIDIA Corporation (NASDAQ: NVDA) had an EPS of $3.66, beating estimates by $0.38. The company’s revenue of $5.66 billion, up 83.8% year over year, beat estimates by $252.24 million. The stock has gained 54.4% in the past 6 months and 52.4% year to date, and the company’s gross profit margin is 63.26%.
By the end of the first quarter of 2021, 80 hedge funds out of the 866 tracked by Insider Monkey held stakes in NVIDIA Corporation (NASDAQ: NVDA) worth roughly $6.2 billion. This is compared to 88 hedge fund holders in the previous quarter, with a total stake value of about $8.69 billion.
SaltLight Capital Management, an investment management firm, mentioned NVIDIA Corporation (NASDAQ: NVDA) in their first-quarter 2021 investor letter. Here‘s what they said:
“In this letter, we highlight one ‘bet’: a follow-up on our December letter where we wrote extensively about our broad thesis about the Artificial Intelligence opportunity. We present a case study of NVIDIA who we believe is delightfully positioned to capture this opportunity.
Unfortunately, for some readers, again this letter tends to overflow in technical IT jargon. Part of our mission is to educate co-investors about our thinking over the long term. We attempt our best to moderate complexity, however, sometimes the technical analysis is the only way to reinforce the thesis.” (Click here to see the full text)
4. General Motors Company (NYSE: GM)
Number of Hedge Fund Holders: 86
General Motors Company (NYSE: GM) is an automobile manufacturer selling vehicles and automobile parts across the world. The company’s subsidiary Cruise is a majority-owned autonomous vehicle manufacturer. It ranks 4th on our list of the best self driving car stocks to invest in.
On June 23rd, General Motors Company (NYSE: GM) and MP2 Energy announced their partnership, aiming to provide renewable electricity in Texas alongside free overnight charging for residents owning GM electric cars. Barclays has also raised the price target for the stock to $74 versus the previous $70 target. In the first quarter of 2021, General Motors Company (NYSE: GM) had an EPS of $2.25, beating estimates by $1.20. Its revenue for the quarter was $32.47 billion, missing estimates by -$432.32 million. The stock has a forward PE ratio of 9.43 and has gained 41.06% in the past 6 months and 44.75% year to date. The company has a gross profit margin of 13.57%.
By the end of the first quarter of 2021, 86 hedge funds out of the 866 tracked by Insider Monkey held stakes in General Motors Company (NYSE: GM) worth roughly $8.05 billion. This is compared to 70 hedge fund holders in the previous quarter, with a total stake value of about $6.33 billion.
3. Baidu, Inc. (NASDAQ: BIDU)
Number of Hedge Fund Holders: 89
Baidu, Inc. (NASDAQ: BIDU) is a company providing internet search services mainly in China. The company owns Apollo, which is an autonomous vehicle company operating in China and operates an autonomous taxi service in the country. It ranks 3rd on our list of the best self driving car stocks to invest in.
On June 17th, Baidu, Inc. (NASDAQ: BIDU) announced its partnership with BAIC Group to release the Apollo Moon with the company. The Apollo Moon is a new robotaxi model due to be mass-produced. This May, York Capital initiated a position in Baidu, Inc. (NASDAQ: BIDU), alongside Soros Fund Management which took a stake in the company with 353,795 shares. In the first quarter of 2021, Baidu, Inc. (NASDAQ: BIDU) had an EPS of $1.93, beating estimates by $0.32. The company’s revenue came in at $4.38 billion, up 38.08% year over year and beating estimates by $148.39 million. It has a gross profit margin of 51.79%. Baidu, Inc. (NASDAQ: BIDU) has gained 5.18% in the past 6 months as well.
By the end of the first quarter of 2021, 89 hedge funds out of the 866 tracked by Insider Monkey held stakes in Baidu, Inc. (NASDAQ: BIDU) worth roughly $6.57 billion. This is compared to 51 hedge fund holders in the previous quarter, with a total stake value of about $4.63 billion.
2. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 127
Apple Inc. (NASDAQ: AAPL) is a manufacturer of electronic devices such as smartphones, computers, tablets, and accessories. The company has time and again indicated its intention to enter the autonomous vehicle sector and the Apple Self-Driving car is expected to be launched in 2024. The company ranks 2nd on our list of the best self driving car stocks to invest in.
On June 23rd, Apple Inc.’s (NASDAQ: AAPL) senior vice president of Retail and People was reported to have said that the company’s stores had opened across the globe. Apple Inc. (NASDAQ: AAPL) has also announced that it may be spending about $300 million on Google Cloud Storage this year as it is increasing user data stored on the platform. This would signify a 50% increase in the amount the company spends on Google Cloud Services.
In their fiscal second-quarter 2021 report, Apple Inc. (NASDAQ: AAPL) had an EPS of $1.4, beating estimates by $0.41. Its revenue of $89.58 billion was up 53.63% year over year and beat estimates by $12.3 billion. The stock gained 0.10% in the past 6 months and 4.33% year to date, and Apple Inc. (NASDAQ: AAPL) has a gross profit margin of 39.88%.
By the end of the first quarter of 2021, 127 hedge funds out of the 866 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ: AAPL) worth roughly $130.9 billion. This is compared to 146 hedge fund holders in the previous quarter.
ClearBridge Investments, an investment management firm, mentioned Apple Inc. (NASDAQ: AAPL) in their first quarter 2021 investor letter. Here’s what they said:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
1. Alphabet Inc. (NASDAQ: GOOG)
Number of Hedge Fund Holders: 159
Alphabet Inc. (NASDAQ: GOOG) is a tech company providing online advertising services in the US and internationally. The company owns Waymo, which focuses on autonomous driving and car technology. It ranks 1st on our list of the best self driving car stocks to invest in.
Back in 2014, Apple Inc. (NASDAQ: AAPL) began working on its Project Titan, bringing in over a thousand car experts and engineers with EV manufacturing expertise, and as of 2021, the company’s physical car project is still progressing, while Apple Inc. (NASDAQ: AAPL) is continuing to test its self-driving software and has also received an autonomous testing permit from the DMV.
Apple Inc. (NASDAQ: AAPL) has announced that it would be spending about $300 million on Google Cloud Storage this year, making the company the largest customer for the service. In the first quarter of 2021, Alphabet Inc. (NASDAQ: GOOG) had an EPS of $26.29, beating estimates by $10.63, while its revenue of $55.31 billion, up 34.39% year over year, beat estimates by $3.62 billion. The stock gained 44.15% in the past 6 months and 46.69% year to date. Alphabet Inc. (NASDAQ: GOOG) has a gross profit margin of 54.32%.
By the end of the first quarter of 2021, 159 hedge funds out of the 866 tracked by Insider Monkey held stakes in Alphabet Inc. (NASDAQ: GOOG) worth roughly $29.08 billion. This is compared to 157 hedge fund holders in the previous quarter, with a total stake value of about $20.57 billion.
Artisan Partners, a high value-added investment management firm, mentioned Alphabet Inc. (NASDAQ: GOOG) in their first-quarter 2021 investor letter. Here’s what they said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
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