Bank of America's recent analysis highlights the massive potential of the autonomous vehicle market, projected to reach a value of $1.2 trillion by 2040. Key beneficiaries of this transformative trend include NVIDIA (NVDA, Financial), Qualcomm (QCOM), and Caterpillar (CAT), among others. As autonomous driving technology advances, over 20 stocks are expected to profit, spanning various sectors from sensor and chip manufacturers to insurance companies. Progressive, the U.S.'s second-largest auto insurer, is also poised to gain, showcasing the widespread impact of autonomous driving across industry chains.
The report emphasizes growth prospects for hardware giants like NVIDIA and Qualcomm, along with sensor and chip makers Aptiv and Mobileye. These companies play vital roles in AI chips and sensors, core components of autonomous driving technology. Companies such as Alphabet's Waymo, Amazon's Zoox, and Tesla already use NVIDIA’s chips, underscoring its market leadership. NVIDIA's CEO, Jensen Huang, has indicated that beyond AI, robotics could be the company's most promising market, with autonomous vehicles seeing significant commercial application.
Bank of America's analysis further extends the scope of autonomous driving opportunities beyond passenger cars, highlighting potential applications in agriculture, freight, logistics, and public transportation.
