Bank of America analysts recently highlighted Nvidia (NVDA, Financial), Qualcomm (QCOM), and Caterpillar as key beneficiaries of the expanding autonomous vehicle market. The report identifies over 20 stocks, including sensor and chip manufacturers like Aptiv and Mobileye, as well as insurance companies such as Progressive, which could gain from this sector's growth. The autonomous vehicle market is projected to reach a value of $1.2 trillion by 2040.
Notably, companies like Alphabet's Waymo, Amazon's Zoox, and Tesla, which are advancing robotaxi services in the U.S., have incorporated Nvidia's chips into their technology. Nvidia CEO Jensen Huang has emphasized the immense growth potential in AI and robotics, predicting that autonomous vehicles will be one of the first major commercial applications of these technologies.
Furthermore, the report mentions collaborations with companies like Uber, Toyota, XPeng, Pony AI, and Baidu, indicating a broadening scope of autonomous opportunities. Analysts also foresee expansion into sectors like agriculture with companies such as Caterpillar and Deere & Co., as well as freight, logistics, and public transportation.
