/A%20concept%20image%20of%20a%20self-driving%20car%20image%20by%20Gorodenkoff%20via%20Shutterstock.jpg)
The unstoppable rise of artificial intelligence (AI) is rewriting the rules of innovation, turning self-driving cars from a sci-fi dream into a rapidly approaching reality. As technology continues to evolve at lightning speed, the demand for autonomous vehicles (AV) is set to climb to unprecedented heights. Industry experts project the autonomous vehicle market will close the year at a remarkable $47.8 billion and soar to a jaw-dropping $133.3 billion by 2030, boasting a powerful 22.8% compound annual growth rate (CAGR) between 2025 and 2030.
Against this backdrop, CES 2025, one of the most influential tech events, served as a showcase for emerging AV technology. Amid the sea of groundbreaking innovations at CES, self-driving cars emerged as a showstopper, highlighting their pivotal role in addressing global challenges and redefining transportation as we know it.
Among the standout moments of CES 2025 was a captivating panel discussion centered on AI’s rapid progress in learning how to drive not just safely, but also faster and smarter than ever before. Experts explored the critical steps needed to design, test, and deploy AI-driven mobility solutions while addressing concerns about safety and security. Thus, with AI accelerating the self-driving revolution, here are three “Strong Buy”-rated self-driving car stocks to load up now for potential gains.
Self-Driving Car Stock #1: Nvidia
Nvidia (NVDA) needs no introduction, standing tall as a driving force behind the AI revolution. From its industry-leading GPUs powering gaming, virtual reality, and high-performance computing to redefining possibilities across sectors, Nvidia continues to set the bar. At CES 2025, the spotlight was firmly on Nvidia’s expanding footprint in mobility, where partnerships with legacy automakers and suppliers showcased its transformative impact.
Stealing the show was Nvidia’s all-encompassing self-driving stack, delivering everything from testing and simulation tools to onboard supercomputers and cloud-driven AI. Presently commanding a hefty market capitalization of $3.4 trillion, shares of this chip king have exploded over the past year, delivering astounding gains of roughly 134%, dwarfing the broader S&P 500 Index’s ($SPX) 24.6% returns during the same time frame.
Nvidia unveiled its fiscal 2025 Q3 earnings report on Nov. 20, delivering results that far exceeded Wall Street’s expectations on both top and bottom lines. The chip giant posted record revenue of $35.1 billion, soaring 94% year-over-year, comfortably outpacing analysts’ forecast figure of $33.1 billion. Adjusted earnings climbed to $0.81 per share, an eye-popping 103% leap from last year, crushing estimates by an 8.6% margin.
Driving Nvidia’s record-breaking performance is its data center division, which fuels the company’s industry-leading AI processors and components. This segment raked in an astounding $30.8 billion in revenue, soaring 112% year over year.
For its fiscal Q4, management projects revenue to reach $37.5 billion. Gross margins are anticipated to be strong, at 73% on a GAAP basis and 73.5% on a non-GAAP basis. Analysts are also optimistic, forecasting a stunning 135.6% year-over-year jump in Nvidia’s profit to $2.78 per share for fiscal 2025, followed by a 43.2% rise to $3.98 per share in fiscal 2026.
Wall Street appears highly bullish on NVDA stock, with a consensus “Strong Buy” rating overall. Of the 43 analysts offering recommendations, 36 advise a “Strong Buy,” three give a “Moderate Buy,” and the remaining four suggest a “Hold.”
The average analyst price target of $176.55 indicates 28.2% potential upside from the current price levels, while the Street-high price target of $220 suggests that NVDA could rally as much as 59.8% from here.
Self-Driving Car Stock #2: Alphabet
Alphabet (GOOGL) is redefining the future of technology, leaving its mark across industries like healthcare, entertainment, AI, and autonomous driving. The company’s ecosystem is a well-oiled machine, with Google Services dominating through its iconic search engine and Google Cloud delivering next-generation enterprise solutions.
Meanwhile, the Other Bets division fuels the future, spearheading breakthroughs like Waymo’s autonomous vehicles and DeepMind’s AI research. Valued at a market cap of $2.4 trillion, shares of this mega-cap stock have outperformed the broader market over the past year, posting gains of nearly 36%.
Alphabet’s Q3 earnings report unveiled on Oct. 29 blew past Wall Street’s expectations, sending its stock up 2.8% in the next trading session. The tech giant posted total revenue of $88.3 billion, reflecting 15% year-over-year growth driven by strong performances across its business segments. This figure easily outpaced analysts’ forecast of $86.2 billion. On the earnings front, Alphabet delivered a 36.8% year-over-year jump in EPS, reaching $2.12 and surpassing predictions by 15.9%.
Breaking down the segments, Google Services posted 13% year-over-year revenue growth, hitting $76.5 billion, fueled by strong performances across its core offerings. On the cloud front, Alphabet posted impressive revenue of $11.4 billion, reflecting a nearly 35% year-over-year surge, powered by exceptional growth in its Google Cloud Platform (GCP) offerings.
Meanwhile, Alphabet’s Other Bets segment, which includes Waymo, also saw significant progress. This segment’s revenue jumped to $388 million from $297 million last year, underscoring its advancing position in the autonomous driving space. As Waymo continues to develop and scale its self-driving technology, its growth is becoming a key contributor to Alphabet’s broader innovation strategy.
Overall, Wall Street remains highly optimistic on GOOGL stock, maintaining a consensus rating of “Strong Buy.” Of the 50 analysts offering recommendations, 39 advise a “Strong Buy,” three suggest a “Moderate Buy,” and the remaining eight analysts maintain a “Hold.”
The average analyst price target of $215.59 indicates 10% potential upside, while the Street-high price target of $240 suggests that GOOGL could rally as much as 22.4% from here.
Self-Driving Car Stock #3: Uber
Since its 2010 debut, San Francisco-based Uber Technologies (UBER) has redefined convenience, making rides just a tap away. Fast forward to over 55 billion trips later, and Uber has evolved far beyond transportation. It’s now a versatile global platform moving people, food, and goods across cities, revolutionizing how we connect and interact. By reimagining mobility, Uber has unlocked exciting new possibilities, reshaping urban life and making the world more accessible than ever before.
With a market cap of approximately $141.8 billion, shares of this ride-hailing giant have delivered gains of roughly 4.4% over the past year.
Earlier this month, on Jan. 6, the stock closed up more than 2% after the company announced that it has teamed up with chip giant Nvidia (NVDA) to accelerate the development of AI-powered autonomous driving technology. CEO Dara Khosrowshahi emphasized that generative AI will drive the future of mobility, and by partnering with Nvidia, Uber aims to speed up the timeline for safe, scalable, autonomous solutions.
As millions of trips are taken daily on its platform, Uber generates a treasure trove of data, providing the perfect foundation for the company’s collaboration with Nvidia. By combining this data with the chip giant’s advanced Cosmos platform and DGX Cloud, Uber and Nvidia are empowering AV partners to develop stronger AI models faster and more efficiently, propelling the future of self-driving technology.
Uber’s Q3 earnings report, released on Oct. 31, exceeded expectations with impressive year-over-year revenue growth of 20.4%, reaching $11.2 billion. The real highlight, however, was its eye-popping EPS of $1.20, a dramatic leap from last year’s $0.10 that easily smashed the consensus forecast of $0.41.
In terms of segment performance, Uber’s mobility division led the charge with $6.4 billion in revenue, marking a 26% year-over-year jump. The delivery segment contributed $3.5 billion, up 18% from the previous year. The freight division brought in $1.3 billion, reflecting a 2% increase. These results underscore Uber’s expanding reach and diverse business strength.
For Q4, management is projecting gross bookings to fall between $42.75 billion and $44.25 billion, signaling 16% to 20% year-over-year growth on a constant currency basis.
The company expects trip growth to maintain momentum similar to Q3 trends. Moreover, Uber anticipates adjusted EBITDA to range between $1.78 billion and $1.88 billion, reflecting 39% to 47% year-over-year growth. Analysts tracking Uber project an impressive 119% year-over-year jump in profit to $1.91 per share for 2024 and grow another 33.5% to $2.55 per share in 2025.
UBER stock has a consensus “Strong Buy” rating on Wall Street. Of the 45 analysts covering the stock, 36 advise a “Strong Buy,” three recommend “Moderate Buy,” and the remaining six maintain a “Hold.”
The average analyst price target of $91.19 indicates 35.4% potential upside, while the Street-high price target of $120 suggests that UBER could rally as much as 141% from here.
