What is autonomous vehicle technology and why does it matter for investors?

Autonomous vehicle technology refers to systems that allow cars to drive themselves with minimal or no human input. This includes sensors, cameras, computer chips, and software that help vehicles navigate safely. For investors, this represents a massive technological shift that could create significant opportunities for companies providing the essential components and systems.

What is the Snapdragon Ride Pilot system?

The Snapdragon Ride Pilot is an advanced driver assistance system developed by Qualcomm and BMW. It enables features like hands-free highway driving and represents a major step towards fully autonomous vehicles. The system is being made available for licensing to other automakers, potentially expanding its market reach significantly.

What does 'licensing technology' mean in the automotive industry?

Licensing technology means that a company like Qualcomm allows other car manufacturers to use their autonomous driving system in exchange for fees or royalties. This is significant because it means the technology can spread across multiple car brands quickly, potentially increasing demand for the underlying components and creating more revenue opportunities.

What are LiDAR sensors and why are they important?

LiDAR (Light Detection and Ranging) sensors use laser light to create detailed 3D maps of a vehicle's surroundings. They're crucial for autonomous vehicles because they help cars 'see' obstacles, pedestrians, and other vehicles with high precision, even in poor weather conditions. Companies that make these sensors could benefit as more cars adopt self-driving technology.

Are autonomous vehicle stocks considered risky investments?

Like many technology investments, autonomous vehicle stocks can be more volatile than traditional investments. The industry is still developing, and success depends on factors like regulatory approval, consumer acceptance, and technological breakthroughs. However, they also offer exposure to what many experts believe is a transformative long-term trend in transportation.

15 handpicked stocks

Self-Driving Tech Stocks May Face Adoption Hurdles

Qualcomm and BMW have partnered to launch a new semi-autonomous driving system, signaling a major step forward in driverless technology. This development creates an investment opportunity centered on the companies that provide the essential hardware and software for the advancement of autonomous vehicles.

Han Tan | Market Analyst

Updated today | Published at September 10