Aeva (AEVA) Targets $80B Market with LiDAR-on-Chip, Faces Morgan Stanley Skepticism

Aeva Technologies Inc. (NASDAQ:AEVA) is one of the best emerging technology stocks to buy right now. The company develops 4D LiDAR sensors based on frequency-modulated continuous-wave (FMCW) technology. This technology enables the simultaneous measurement of distance and velocity, which is critical for autonomous vehicles and robotics.

Traditional LiDAR solutions are still too costly and challenging to produce on a large scale. This leaves an opportunity for new and more affordable solutions to enter the market.

Aeva (AEVA) Targets $80B Market with LiDAR-on-Chip, Faces Morgan Stanley Skepticism

Aeva Technologies Inc. (NASDAQ:AEVA) has created an innovative “LiDAR-on-chip” that is smaller, more affordable, and more powerful than traditional sensors. The technology could play a pivotal role in enabling autonomous machines and vehicles, opening an addressable market of more than $80 billion across transportation, defense, robotics, and consumer applications.

The stock has delivered outsized gains of more than 230% year-to-date but has since corrected nearly 60% to $16 from its June peak of $37, levels last seen in late 2021. While most analysts continue to rate the stock as a Buy, some cautionary voices remain, such as Morgan Stanley’s Joseph Moore, a long-time skeptic.

On August 18, Moore reiterated a Hold rating on Aeva Technologies Inc. (NASDAQ:AEVA) with a $19 price target. In his note, he acknowledged that the company has made strong progress in bringing its technology closer to commercialization. Its investment in R&D has produced a competitive platform that combines software, system-on-chip, and LiDAR technology, reinforcing the company’s technical edge in FMCW.

Still, Moore pointed to competitive risks, especially from low-cost Chinese players that could pressure pricing in what remains a deflationary market. He also noted that while Aeva Technologies Inc.’s (NASDAQ:AEVA) automotive engagements are advancing, broader adoption across other sectors is still in its early stages.

Aeva Technologies Inc. (NASDAQ:AEVA) designs and manufactures advanced LiDAR sensing systems and perception software, using Frequency Modulated Continuous Wave (FMCW) sensing.

While we acknowledge the potential of AEVA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AEVA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.