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16 handpicked stocks

Private Equity's Auto Tech Takeover

Private equity firm Advent International's $1.3 billion acquisition of U-Blox highlights a growing trend of investment in specialized automotive technology. This theme focuses on other publicly-traded semiconductor companies that provide critical positioning and connectivity hardware for the expanding autonomous vehicle and IoT markets.

Author avatar

Han Tan | Market Analyst

Published on August 18

Your Basket's Financial Footprint

Market capitalisation breakdown for the basket 'Private Equity's Auto Tech Takeover'.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and broader-market tracking, so performance tends to be more stable.
  • Suitable as a core holding for diversified portfolios, not a speculative small-cap growth bet.
  • Likely steady, long-term appreciation rather than rapid, short-term explosive gains.
Total Market Cap
  • SMTC: $5.88B

  • ON: $22.53B

  • MX: $108.58M

  • Other

About This Group of Stocks

1

Our Expert Thinking

Advent International's $1.3 billion acquisition of U-Blox reveals private equity's growing appetite for automotive technology companies. This signals that public markets may be undervaluing the foundational semiconductor firms powering autonomous vehicles and IoT systems, creating opportunities for similar takeovers or sector re-ratings.

2

What You Need to Know

These companies design critical positioning and wireless communication chips essential for next-generation vehicles. They represent the hardware backbone enabling autonomous driving systems and connected car technologies. The substantial premium paid for U-Blox suggests these specialized tech firms may be trading below their strategic value.

3

Why These Stocks

Each company was handpicked for their similar technological expertise in GNSS, positioning, and wireless connectivity chips. Professional analysts identified these publicly-traded semiconductor firms as potential M&A targets or beneficiaries of increased investor attention following the private equity trend into auto tech.

Why You'll Want to Watch These Stocks

🎯

M&A Target Potential

Following the U-Blox acquisition, these semiconductor companies could become attractive takeover targets for private equity firms seeking exposure to the booming autonomous vehicle market.

🚗

Autonomous Vehicle Boom

These companies provide the essential chips that power self-driving cars and connected vehicles, positioning them at the heart of one of technology's fastest-growing sectors.

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Hidden Value Play

The premium paid for U-Blox suggests public markets may be undervaluing these specialized tech firms, creating opportunities for significant re-rating as private capital recognises their strategic importance.

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

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