AMBA - Shhh! 3 Secret Autonomous Driving Stocks Flying Below Wall Street's Radar
2024-05-02 06:00:00 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While a high-risk, high-reward sector, autonomous driving stocks represent a viable opportunity for speculation. It all comes down to expert projections.
According to Fortune Business Insights, the global autonomous vehicle market reached a valuation of just over $1.5 billion in 2022. Analysts believe that by 2030, the segment could be worth $13.63 trillion. If so, that would represent a compound annual growth rate of 32.3% from 2023.
Of course, no guarantees exist and projections are ultimately opinions – everyone has them. Nevertheless, if you’re willing to roll the dice, these autonomous driving stocks should be on your radar.
Baidu (BIDU)
A Chinese multinational technology firm, Baidu (NASDAQ: BIDU ) isn’t a pure-play example among autonomous driving stocks. However, as InvestorPlace contributor Dana Blankenhorn explained, Baidu will offer its maps of its home nation to Tesla (NASDAQ: TSLA ). This initiative will help the electric vehicle manufacturer develop its full self-driving system. Combined with Baidu’s core internet technology business, BIDU looks awfully attractive.
On a financial note, Baidu hits the right notes. In fiscal 2023, the company’s average positive earnings surprise came out to 26.88%. For fiscal 2024, covering experts are looking for earnings per share of $10.74 with a high-side estimate of $12.02. Last year, the company produced earnings of $11.19 per share.
On the top line, analysts anticipate sales to hit $19.79 billion. If so, we’re talking about a 6.5% growth rate from last year’s haul of $18.57 billion. Further, the most optimistic target calls for $20.73 billion. Given the expanded growth prospect, BIDU could be undervalued. Therefore, it makes an intriguing case for autonomous driving stocks.
Ambarella (AMBA)
Headquartered in Santa Clara, California, Ambarella (NASDAQ: AMBA ) develops semiconductor solutions that enable high-definition ( HD ) and ultra-HD compression, image signal processing and artificial intelligence processing worldwide. It’s one of the powerhouses in the field of advanced driver assistance systems. Therefore, AMBA makes a compelling case for autonomous driving stocks to buy.
As an investment, one of the standout attributes of Ambarella is that it consistently mitigates expected losses per share. In fiscal 2024, the company’s average quarterly surprise came out to 28.18%. For the current fiscal year (2025), experts believe that Ambarella will post a loss of 85 cents per share. The most optimistic target calls for a loss of 77 cents. Last year, AMBA was in the red by 83 cents per share.
On the top line, analysts are projecting sales to hit $250.13 million. That would be up 10.4% from last year’s tally of $226.47 million. Moreover, in fiscal 2026, the company could generate sales of $320.8 million, up 28.3% from fiscal 2025’s projected top line.
Aeva Technologies (AEVA)
Based in Mountain View, California, Aeva Technologies (NYSE: AEVA ) engages in the design, manufacturing and sale of lidar sensing systems and related perception and autonomy-enabled software solutions.
One of the underappreciated but compelling ideas among autonomous driving stocks, Aeva distinguishes itself with its 4D sensing system. This innovation can predict the velocities of surrounding objects, enabling superior avoidance tactics.
Generally speaking, Aeva’s bottom-line performance is messy. In fiscal 2023, the average quarterly surprise came out to a loss of 4.4%. Its best performance occurred in Q1, posting a loss of 80 cents against an expected loss of 82 cents. For the current year, experts anticipate a loss of $2.49, an improvement over last year’s result of $3.30 in the red.
On the top line, analysts believe sales could reach $8.79 million. That’s more than double last year’s result of $4.31 million. Further, in the following year, Aeva could generate revenue of $37.08 million. That’s up 321.8% from projected 2024 sales.
Combined with a strong cash-to-debt ratio of 30X , AEVA is worth considering for your speculative portfolio.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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