What is QNX and why does it matter for investors?

QNX is a real-time operating system developed by BlackBerry that powers the software inside millions of vehicles worldwide. Think of it as the behind-the-scenes brain that keeps a car's digital systems running safely and reliably. It matters for investors because automakers don't typically build this software themselves — they pay specialist companies like BlackBerry to provide it. With a reported $950 million royalty backlog, QNX represents a significant and recurring revenue stream, making it a key reason BlackBerry's earnings surged.

What does 'connected vehicle' actually mean?

A connected vehicle is a car or truck that can communicate with the internet, other vehicles, infrastructure (like traffic lights), and even cloud-based services. This connectivity enables features like real-time navigation, over-the-air software updates, remote diagnostics, and autonomous driving assistance. As more vehicles become connected, the demand for the software and security systems that power them grows significantly — which is exactly what this group of stocks is built around.

What are embedded systems, and why are they important in cars?

Embedded systems are small, dedicated software programmes built directly into a device to control specific functions. In a modern car, embedded systems manage everything from the braking system and engine control to the infotainment screen and safety sensors. They need to be extremely reliable, fast, and secure. Companies that specialise in building and protecting these systems — like those in this group — are in high demand as vehicles become increasingly complex and software-driven.

Why is cybersecurity such a big part of this investment theme?

As vehicles connect to the internet and communicate with cloud services, they also become vulnerable to hacking and cyber threats — just like a computer or smartphone. A security breach in a connected vehicle could have serious real-world consequences. This is why automakers and fleet operators are investing heavily in enterprise-grade cybersecurity. Several companies in this group, including CrowdStrike, Palo Alto Networks, and CyberArk, provide the tools and platforms needed to keep these connected systems safe.

What is a 'zero-trust' security model, and why does it matter here?

A zero-trust security model is an approach where no user, device, or system is automatically trusted — even if it's already inside a network. Every connection must be verified before access is granted. In the context of connected vehicles and cloud infrastructure, this is especially important because vehicles communicate constantly with external services. Companies like Zscaler, which are included in this group, use zero-trust principles to ensure those communications remain safe and private.

What is 'drive-by-wire' technology?

Drive-by-wire replaces traditional mechanical connections in a vehicle (like a physical link between the steering wheel and the wheels) with electronic controls and software. Instead of physical cables and levers, the driver's inputs are converted into electronic signals that are processed by software before being sent to the relevant component. This technology is central to electric vehicles and autonomous driving, and it's one of the innovations that companies like REE Automotive are building their platforms around.

What does 'Analyst Rating' mean on a stock card?

An analyst rating is an opinion issued by a professional financial analyst on whether a stock is worth buying, holding, or selling. Ratings are typically expressed as 'Buy', 'Hold', or 'Sell' (though different firms use slightly different terms). These ratings are based on research into a company's financial health, market position, and future outlook. They can be a useful starting point for understanding how experts view a stock, though they should always be considered alongside other information.

16 handpicked stocks

Automotive Software Revolution | Investing Overview

BlackBerry's shares rallied sharply after the company reported strong earnings driven by its QNX automotive software division and robust cybersecurity demand. This successful turnaround highlights a broader investment opportunity in the fast-growing embedded systems and connected vehicle technology sectors.

Jamie Dutta | Financial Market Analyst

Published on April 10

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

CrowdStrike Holdings, Inc.

CRWD

Current price

$394.68

CrowdStrike offers cloud-delivered endpoint protection to secure connected workloads and data.

Palo Alto Networks, Inc.

PANW

Current price

$166.99

Palo Alto Networks delivers comprehensive cybersecurity platforms essential for securing connected vehicle networks.

MOBILEYE GLOBAL INC.

MBLY

Current price

$7.21

Mobileye provides advanced driver-assistance systems and self-driving software reliant on embedded technology.

BlackBerry Ltd.

Current price

$3.82

Zscaler, Inc.

Current price

$122.23

Aurora Innovation Inc

AUR

Current price

$4.03

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Your Basket's Financial Footprint

The basket's total market capitalisation is 331,964.5992 and is anchored by a small number of large-cap constituents that dominate its weighting. This concentration suggests a generally stable, large-cap profile, likely exhibiting lower idiosyncratic volatility than a small‑cap basket.

Key Takeaways for Investors:

Large-cap dominance generally implies lower volatility and performance tracking broader market trends, reducing idiosyncratic risk.
Suited as a core, long-term portfolio holding rather than a short-term speculative trade.
Expect steadier, incremental growth over time; avoid expecting rapid, explosive gains.

Total Market Cap

CRWD: $99.93B
PANW: $135.43B
MBLY: $6.07B
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+146.06%

≈

About This Group of Stocks

Our Expert Thinking

BlackBerry's recent earnings surge — fuelled by surging demand for its QNX automotive software and cybersecurity divisions — signals a much bigger shift in the market. Modern vehicles are rapidly becoming complex, connected computers on wheels. This group is built around the idea that the companies providing the software, security, and embedded systems behind this transformation stand to benefit enormously as the automotive world goes digital.

What You Need to Know

This is a growth-oriented group, meaning these companies are positioned around future opportunity rather than steady, established income. The basket spans several connected areas: embedded vehicle software, autonomous driving platforms, IoT fleet management, and enterprise cybersecurity. Because this theme touches multiple fast-moving sectors, it offers a broad range of exposure — but also carries the typical risks associated with technology and innovation-focused investing.

Why These Stocks

These stocks were handpicked by professional analysts to capture the full spectrum of the connected vehicle opportunity. From direct automotive software pure-plays like BlackBerry and Mobileye, to established auto-parts makers pivoting to tech, and leading cybersecurity firms protecting vehicle networks — each company was selected because it plays a meaningful role in the digitisation of modern mobility. This isn't a random collection; it's a carefully considered thematic portfolio.

Group Performance Snapshot

146.06%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 146.06% over the next year.

12 of 15

Stocks Rated Buy by Analysts

12 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚗

The Car Is Becoming a Computer

Every new vehicle rolling off the production line is packed with software, sensors, and connected systems. The companies in this group are building the digital backbone that makes it all work — and the opportunity is enormous.

🔐

Cybersecurity Is the New Seatbelt

As vehicles connect to the internet, they become targets. Experts are watching cybersecurity firms in this space closely, knowing that protecting connected vehicles is fast becoming a non-negotiable — and highly profitable — necessity.

📈

BlackBerry Just Proved the Potential

BlackBerry's impressive earnings surge — driven by a $950 million QNX royalty backlog — showed the market exactly what's possible when a company locks in a strong position within the connected vehicle software space. This could just be the beginning.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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Automotive Software Revolution | Investing Overview

Top Picks from This Group

Your Basket's Financial Footprint

12 Month Growth Potential

About This Group of Stocks

Our Expert Thinking

What You Need to Know

Why These Stocks