Thanks to the advent of advanced computing technologies, programmers and engineers have not only forwarded multiple artificial intelligence-based platforms but also delivered practical conveniences that enhanced efficiencies across the board. Yet, arguably, the biggest paradigm shift remains to be realized: fully autonomous self-driving systems. However, with intense research and development occurring in this segment, investors may want to consider planning ahead with three AI stocks to considering buying – GOOG, GM, and NVDA.
To be sure, automating personal mobility carries with it intense responsibility. According to Stanford University’s Human-Centered Artificial Intelligence program, “A lot is at stake every time an autonomous car or plane strikes off on its own. Engineers place great trust in the intelligent systems that see and sense the world and help self-controlled vehicles steer clear of virtually every hazard that might come their way.”
In other words, AI developers must ensure that self-driving vehicles will not create more harm but rather mitigate it. Still, with the rise of the global population, not engineering autonomous solutions can arguably yield even more devastating results.
For instance, the American Transportation Research Institute estimates that congestion causes the U.S. freight sector alone to incur costs of $74.1 billion annually, with $66.1 billion attributed to urban areas. Another study revealed that the average urban commuter wastes about 54 hours each year sitting in traffic. Overall, this dynamic translates to an annual economic cost of $179 billion.
More importantly, human lives are at stake if society does not address traffic volumes, particularly in major metropolitan areas. According to the U.S. Government Accountability Office, it cited research noting that “traffic fatalities during the first half of 2021 increased 18.4% since the first half of 2020.”
In short, automated mobility may help improve economic efficiencies and save lives. To get ahead of a potentially groundbreaking trend, investors ought to consider the below AI stocks to buy.
Alphabet (GOOG, GOOGL)
One of the frontrunners among AI stocks to buy, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), owns Waymo, the internet giant’s autonomous driving technology firm. Formerly known as the Google self-driving car project, Waymo is pioneering the concept of an autonomous ride-hailing service called Waymo One.
Late last year, the autonomous driving specialist inked a strategic partnership with global auto manufacturer Geely. Per TipRanks reporter Payal Gupta, the “partnership paves the way for the expansion of the Waymo One fleet with Geely’s all-electric vehicles.”
The move represents broader initiatives to integrate a transportation-as-a-service business model that can radically change how people view the broader sharing economy. In addition, Waymo has intentions to eventually unveil an all-electric, fully-autonomous car without a steering wheel.
As a bonus for contrarian investors, Alphabet represents one of the most solid AI stocks to buy. The company features multiple strengths across the fiscal spectrum, including a strong balance sheet, a three-year revenue growth rate that currently runs at 25%, and profitability margins that rank better than most competitors in the interactive media industry.
Is GOOG Stock a Buy, According to Analysts?
Turning to Wall Street, GOOG stock has a Strong Buy consensus rating based on nine Buys, no Holds, and zero Sell ratings. The average GOOG price target is $144.78, implying 48.95% upside potential.
General Motors (GM)
An American automotive icon, General Motors (NYSE:GM), recently made a strong pivot to electric vehicles, replacing some of its classics with an electric-powered motor. At the same time, the company also represents one of the AI stocks to buy for the broader transformation of mobility.
According to another article from TipRanks’ Payal Gupta, GM and its autonomous technology unit Cruise “filed a petition to build and deploy a self-driving car without human controls” in February of this year.
“The petition to the National Highway Traffic Safety Administration is for Cruise Origin, an autonomous electric car designed to operate without a human driver. The car has been purposefully designed to operate without human controls such as steering wheels or brake pedals.”
In addition, GM is also leveraging AI technologies to improve its vehicle inspection process. Through a partnership with Israeli startup UVeye, GM is able to quickly and accurately check certain vehicular components for defects and other safety-related issues.
Contrarians will also appreciate GM for its undervalued business profile. Despite featuring solid profitability metrics – such as a net margin of 6.7% that ranks better than 74% of the competition – the company has an ultra-low forward price-earnings ratio of 5.45x.
Is GM Stock a Buy, According to Analysts?
Turning to Wall Street, GM stock has a Moderate Buy consensus rating based on 11 Buys, four Holds, and one Sell rating. The average GM price target is $53.79, implying 63.55% upside potential.
Nvidia (NVDA)
Perhaps best known for its graphics processing units for gaming applications and cryptocurrency mining, Nvidia (NASDAQ:NVDA) also represents one of the top players among AI stocks to buy. Leveraging various initiatives such as machine learning, the company consistently pushes the envelope, accelerating human potential through advanced computing innovations.
Recently, Nvidia generated headlines when the company unveiled Nvidia Drive Thor, its next-generation centralized computer for safe and secure autonomous vehicles.
According to the tech firm’s press release, Thor “unifies intelligent functions — including automated and assisted driving, parking, driver and occupant monitoring, digital instrument cluster, in-vehicle infotainment (IVI) and rear-seat entertainment — into a single architecture for greater efficiency and lower overall system cost.”
“Advances in accelerated computing and AI are moving at lightspeed,” said Nvidia CEO and founder Jensen Huang. “DRIVE Thor is the superhero of centralized compute, with lightning-fast performance to deliver continuously upgradable, safe, and secure software-defined supercomputers on wheels.”
NVDA represents another potentially undervalued market idea among AI stocks to buy. The company enjoys a robust balance sheet and excellent growth and profitability metrics. However, macroeconomic headwinds have pushed down Nvidia’s equity value, but at 60% below parity for the year thus far, the sell-off may be too aggressive considering the fundamental relevancies.
Is NVDA Stock a Buy, According to Analysts?
Turning to Wall Street, NVDA stock has a Moderate Buy consensus rating based on 23 Buys, nine Holds, and zero Sell ratings. The average NVDA price target is $200.67, implying 68.50% upside potential.
Conclusion: The Future of Automation is Coming
Although the automation of mobility has a long way to go before it becomes fully integrated, several of the world’s top tech firms continue to invest billions of dollars into their autonomy projects. Therefore, it may only be a matter of time before self-driving vehicles become a reality. To get ahead of this wave, investors may want to consider the above AI stocks to buy, as they have solid business profiles.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
