Stocks in Artificial Intelligence (excluding Nvidia) worth buying and holding for the next ten years
Uber Positions Itself for Success in the Robotaxi Market
Uber Technologies is making strategic moves to capitalize on the growing robotaxi market, even though the company does not develop its own autonomous technology. The global market for autonomous trucking, another significant opportunity, is estimated to be worth over $600 billion by 2035, according to a recent McKinsey analysis.
The robotaxi market, with its potential to revolutionize the transportation industry, presents a lucrative opportunity for companies. Uber's approach of forging partnerships with companies developing autonomous driving systems is less capital-intensive and positions the company to benefit regardless of which company wins the robotaxi race.
In 2020, Uber sold its autonomous technology to Aurora Innovation, a leader in the autonomous trucking space. Aurora Innovation, with a market capitalization of nearly $10 billion, is more risky than others in the field due to its pre-revenue status. However, the company boasts proven technology, strong partnerships, and significant capital, positioning it well for future revenue in the robotaxi market.
Beyond Uber and Aurora Innovation, several other significant companies are well-positioned to benefit from the growth of artificial intelligence (AI) across various segments of the market.
Microsoft, a major player in AI, integrates AI deeply into its cloud platform Azure, provides AI tools to developers, and embeds AI capabilities into its software suite, enhancing enterprise productivity and data management. Through Amazon Web Services, Amazon offers AI tools and infrastructure to developers and customers, and applies AI extensively in its retail business. Meta is reportedly the largest investor in AI infrastructure, spending tens of billions on AI-focused compute capacity. It leverages AI for improving ad targeting, content recommendations, and generative AI ad creatives, which have begun generating significant ad revenue.
IBM focuses on enterprise-grade, regulation-compliant AI with its Watsonx platform and hybrid cloud powered by Red Hat. It targets Fortune 500 companies offering AI governance and transformation solutions rather than viral consumer AI. Alphabet, a key AI competitor, integrates AI into its core search engine and enterprise products. Despite some investor concerns about AI disrupting traditional search, Google remains dominant, innovating with AI search overviews and generative AI (e.g., Bard).
Taiwan Semiconductor Manufacturing Company (TSMC) benefits from the surge in demand for AI chips as the primary chip foundry for Nvidia and other AI chipmakers. It anticipates high AI-related revenue growth and is a strategic play in AI hardware manufacturing. Palantir Technologies is known for AI-driven data analytics platforms, serving government and commercial clients, making it significant in AI-powered data intelligence.
Emerging and specialized firms such as Cohere extend large language model capabilities to enterprises, illustrating a broad and diversified AI ecosystem benefiting from this growth. Tesla uses AI extensively in autonomous driving technology and vehicle software, positioning it as a notable AI beneficiary. Niche players like Cerence (AI automotive assistants) and Faro Technologies (AI-enhanced 3D imaging and measuring devices) also play a role in this growing AI landscape.
In light of Uber's focus on the robotaxi market, the company is considering investing a portion of its finances in AI-driven automotive assistants, like Cerence, to bolster its competitive edge. Microsoft, with its AI-integrated cloud platform Azure and software suite, is poised to generate substantial money through increased enterprise productivity and data management.
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