We recently shared a list of 11 Best Lidar Stocks to Buy According to Hedge Funds. Today, we will explore how Luminar Technologies, Inc. (NASDAQ:LAZR) compares to these top Lidar stocks.
According to the United Nations, around 1.35 million people die each year in road accidents, mainly due to human mistakes. These unsettling statistics have pushed the development of self-driving cars. These vehicles rely on Lidar, which sends out laser pulses to create a quick 3D map of their surroundings, enabling them to react faster than human drivers.
S.N. Jha from Fact.MR notes that Lidar sensors are highly precise, contributing to the rise of autonomous vehicles. He states, “Lidar sensors have shown great accuracy in different autonomous driving technologies and are increasingly utilized in the automotive sector. Moreover, rising investments in these technologies will likely increase the demand for Lidar sensors in various automotive applications over the next decade.”
This claim is supported by data from Markets and Markets, which valued the Lidar market at $1.4 billion in 2023, projecting an 18.2% growth rate annually through 2029.
However, these projections might be conservative. Recently, companies have introduced ideas for autonomous drones and robots for logistics, aiming to deliver products without human oversight. This shift could reduce accidents, cut costs for e-commerce, and positively affect the environment.
ARK Invest suggests that the autonomous logistics market could generate as much as $80 billion in revenue by 2026, potentially soaring to $920 billion by 2030. With so many uses for Lidar emerging, the market’s potential is vast. Additionally, the rise of artificial intelligence (AI) is expected to further boost Lidar demand. AI can enhance the processing of Lidar data, improving both accuracy and safety.
To identify the best Lidar stocks, we conducted thorough research on companies involved in manufacturing Lidar products, developing related technologies, and integrating Lidar into their offerings. Based on hedge fund interest in Q3 2024, we compiled our list of top picks.
Why follow hedge funds? Past research shows that mimicking the stock selections of leading hedge funds can yield better market returns. Our newsletter has selected stocks that returned 275% since May 2014, outpacing benchmarks by a significant margin.
Luminar Technologies, Inc. (NASDAQ:LAZR) was among the first companies to go public in the lidar field back in 2020. Their technology is now integrated into several Volvo models, including the EX90 electric SUV and a new ADAS system with Toyota.
Recently, Luminar revamped its leadership, appointing Michael Southard as VP of Engineering and Alex Fishkin as Chief Legal Officer. CEO Austin Russell stated, “We’re setting Luminar up for success in 2025 with leadership enhancements to help us achieve strong growth and efficiency.”
Amid industry challenges, Luminar’s financial health is on the rise. Their Q3 2024 non-GAAP free cash flow grew by roughly $20 million from the previous quarter, thanks to cost-cutting measures, including a reduction in non-technical staff.
“Today, nearly every major automaker has LiDAR in their plans,” Russell emphasized, pointing to the substantial market potential in this growing sector.
Overall, LAZR holds the 7th position on our list of the best Lidar stocks to buy according to hedge funds. While it shows promise, we believe that AI stocks may offer better returns in a shorter time frame. If you’re looking for a potential AI investment, consider checking out our report on the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article originally appeared on Insider Monkey.
Source link
Lidar, Luminar Technologies, autonomous cars, hedge fund, Lidar data, Lidar sensors, LAZR, automotive industry, autonomous driving, use Lidar
