Goldman Sachs predicts that autonomous vehicles will continue to grow in the ride-sharing industry and trucking sector.
Mark Delaney of Delaney Research says that it is well-established that the technology for self-driving cars works. “Investors are now focused on how fast the market grows and the size.”
Melaney estimates that autonomous vehicles will make up 8 percent of the US rideshare market at the end of the decade, as the commercial operation continues to expand in dozens of cities.
Goldman Sachs suggests that those who want to be exposed to the rapid growth of autonomous vehicles expected in the future should own the three following stocks.
Lyft Inc (NYSE: LYFT)
Goldman Sachs says that the risks associated with AV for ride-sharing services like Lyft have been overblown, and are already fully baked in to stock prices.
The investment firm believes that LYFT “will continue to enter into partnership” in order to play a key role at some point in generating the demand for autonomous cars.
Mark Delaney rates Lyft’s stock as “buy” at the moment. Mark Delaney’s $20 price target for the ride-hailing service indicates a potential increase of almost 40% over current levels.
Lyft Inc. has recently raised its share purchase authorization to $750,000,000, giving you an extra reason to buy it by the second half of 2025.
Alphabet Inc. (NASDAQ: GOOGL)
Alphabet, the parent company of Google, is a great way to get into self-driving cars. This is because Alphabet has produced tangible results in the market for AV.
According to the most recent update, Waymo is currently leading in autonomous vehicle sales. It averages a quarter million rides per week.
Goldman Sachs has given GOOGL a buy rating with a $220 price target, indicating a potential gain of over 25% from the current level.
Alphabet’s shares, which at the time of writing had a dividend yield of 0.48 %, will be even more attractive to buy in 2025.
TE Connectivity plc (NYSE TEL: TEL).
Goldman Sachs believes that this Galway-based firm has “incremental opportunities” for content, since connectivity at high speeds is essential to both partially and fully autonomous vehicles.
Mark Delaney, in his latest research note to clients, said that data connectors make up 10% of total connectors per vehicle and are a growth opportunity.
The firm rates TE Connectivity’s shares as “buy”. Delaney’s price target for the NYSE listed firm is $184, which indicates a potential gain of another 13%.
TEL is a good stock to invest in AV because it pays a dividend yield that’s 1.73%. This makes the company even more appealing to income investors.
The post Goldman Sachs Names Top 3 Autonomous Vehicle Stocks to Buy and Hold in 2025 will be updated as new information becomes available.
