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5 Most Undervalued EV Stocks To Buy According To Hedge Funds

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In this article, we discuss the 5 most undervalued EV stocks to buy according to hedge funds. To read the detailed analysis of the EV industry, go directly to the 12 Most Undervalued EV Stocks To Buy According To Hedge Funds.

5. Stellantis N.V. (NYSE:STLA)

Number of Hedge Fund Holders: 27

Stellantis N.V. (NYSE:STLA) is a multinational automotive company headquartered in the Netherlands. The company owns multiple famous car brands such as Alfa Romeo, Chrysler, Dodge, and Maserati. In November 2022, Stellantis N.V. (NYSE:STLA) bought an autonomous vehicle technology company, aiMotive. The acquisition was made to expand the company’s footprint in the autonomous vehicle industry.

Stellantis N.V. (NYSE:STLA)’s dividend yield is one of its most attractive metrics. As of August 25, the company has a dividend yield of over 8%. Despite the high dividend yield, it has a forward payout ratio of 26% which isn’t likely to affect the company’s cash flows in a notable way.

As of the second quarter of 2023, Stellantis N.V. (NYSE:STLA) has 25 battery electric vehicles in its product portfolio and plans to add 23 more through 2024.

In Q2 2023, Stellantis N.V. (NYSE:STLA)’s stock was owned by 27 hedge funds, making it the 5th most undervalued EV stock to buy according to hedge funds.

Miller Value Partners made the following comment about Stellantis N.V. (NYSE:STLA) in its second quarter 2023 investor letter:

“We initiated a starter position in Stellantis N.V. (NYSE:STLA), which makes Jeep, Dodge and Fiat cars. The company has a nearly 8% dividend yield with enough net cash (cash minus debt) on the balance sheet to cover the dividend for almost five years. The company trades at 1.7x operating profits, which means the market is already expecting a likely drop in cash flow. Still, the shares appear to be worth meaningfully more than where they trade, and management is heavily aligned with stockholders with a 14% stake. They share our view that the valuation is compelling, as the company plans on repurchasing ~3% of shares outstanding this year.”

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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