What are the key factors driving growth in the autonomous vehicle market? How does Alphabet Inc. (GOOG) compare to other self-driving car stocks? What role does Waymo play in Alphabet Inc.’s strategy for self-driving technology? How are partnerships evolving between startups and traditional automakers in the autonomous vehicle space? What projections exist for Level 3 and Level 4 autonomous vehicle adoption by 2030?
We recently compiled a list of the 11 Best Self-Driving Car Stocks to Buy According to Analysts. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against the other self-driving car stocks.
The term “self-driving car stocks” describes publicly traded businesses engaged in creating, manufacturing, or using autonomous vehicle technology. These businesses either directly contribute to the development of self-driving systems or offer crucial parts and services to the autonomous driving industry.
The autonomous vehicle market is booming. Grand View Research estimates that the global market for autonomous vehicles was worth $68.09 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 19.9% from 2025 to 2030. The industry is driven by the significant demand for tech adoption by customers, road safety, connectivity, advancements in AI, and sensor technology. In 2024, the passenger vehicle segment led the industry and accounted for 69% of the global revenue. The North American autonomous vehicle market dominated the global market with a share of over 37.1% in 2024.
On the other hand, according to Goldman Sachs Research, Level 3 autonomous cars, which permit hands-off, eyes-off driving in some situations, might make up as much as 10% of new cars sold globally by 2030, down from a previous estimate of 12%. It is anticipated that Level 4 fully autonomous vehicles will account for 2.5% of sales, up from 3.5% in the past. Vehicles classified as Level 2 and Level 2+, which need to be supervised, are projected to rise from 20% at present to 30% by 2027. Adoption is expected to speed up due to AI advancements and declining hardware prices, notwithstanding delays caused by technological, legislative, and business model obstacles. By 2030, a market for robotaxis valued at over $25 billion would develop, driven by commercial AV fleets. By 2030, the cost of an AV mile might be less than $1, and by 2040, it could be $0.58. Long-term, AVs may account for 60% of new light vehicle sales worldwide by 2040, with China dominating (90%), followed by Europe (80%), and the United States (65%).
As per S&P Global’s report, the industry’s focus on self-driving cars has changed from lofty Level 5 autonomy to practical, incremental applications. Tech firms and manufacturers came together at CES 2025 with realistic objectives, especially in the area of Level 4 autonomy. Companies increasingly prefer deployable technology, such as ride-hailing services and automated shuttles, above completely autonomous personal vehicles. Leading this shift is Waymo, which reports more than 4 million trips overall and 150,000 paid rides weekly. It displayed new Hyundai and Zeekr automobiles, growing its business in additional American cities and adjusting to local laws. These actions show ride-hailing’s scalability in light of the present limitations.
Meanwhile, conventional automakers showcased autonomous shuttle concepts, while Level 2+ and Level 3 ADAS systems continue to be used in consumer vehicles. As startups with specialized inventions, like AI chips or sensor software, work with larger companies that have the resources and manufacturing capacity, partnerships are growing. Smaller players struggle to operate on their own because of high R&D expenses and regulatory complexity. As the market transitions from hype to practical implementation, Level 4 geo-fenced applications and delivery systems are expected to be the next big thing. The autonomous future is increasingly defined by gradual, cooperative progress rather than disruptive leaps.
For this list, we thoroughly reviewed reputable sources and compiled an initial list of 20 self-driving stocks. Then we selected the 11 stocks that had the highest upside potential as of April 22, 2025. We have only included stocks in our list with an upside potential of 14% or higher. The stocks are ranked in ascending order of the upside potential.
Note: Not every company included in the list is solely focused on self-driving technology. Some of the stocks highlighted below are involved indirectly by investing in businesses that specialize in autonomous driving.
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Analysts’ Upside Potential as of April 22: 27.03%
One of the leading companies in the self-driving car space is Alphabet Inc. (NASDAQ:GOOG), the parent company of Google. The key to self-driving automobiles is data, specifically the use of road data to teach an artificial intelligence system how to drive a car. Google has a clear advantage in this regard due to its extensive index of online information. All types of businesses utilize Google Cloud, a subsidiary, to manage autonomous car design and manufacture, train self-driving AI algorithms, and handle vehicle software updates.
The leading autonomous car startup, Waymo, has invested in Alphabet Inc. (NASDAQ:GOOG). Google has been funding Waymo’s research and development for years with its wildly successful online advertising company. Waymo is developing its “Waymo Driver” system for use as an autonomous ride-hailing service (Waymo One) and a heavy freight and delivery solution (Waymo Via).
Waymo’s autonomous vehicles are currently operating in Austin, San Francisco, Los Angeles, and Phoenix. In its service zones, Waymo One, the company’s self-driving ride-hailing service, is open twenty-four hours a day, seven days a week. As of right now, Waymo has about 700 autonomous vehicles on the road; since 2019, the fleet has traveled over 20 million miles.
Merion Road Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:
“The long only portfolio fell slightly over 8% during the quarter, primarily attributable to our tech-oriented holdings (GOOG, AMZN) and economically sensitive industrials (CLH, FERG). Regarding the former, there continues to be a debate as to whether or not their investments in AI will produce adequate returns. The AI race publicly began back in 2023 when Microsoft CEO Satya Nadella threw the gauntlet down stating that he hopes GOOG would ‘come out and show that they can dance.’ In response, Alphabet Inc. (NASDAQ:GOOG) ramped their capex spend from $32bn in 2023 to almost $53bn last year, with a planned $75bn this year. So far, their pre-tax return on tangible capital has barely budged at 48% (though consensus has this falling next year). With a wide range of ubiquitous products, GOOG is as well positioned as anyone to win the war. For instance, the integration of AI overviews into search has produced strong metrics and the company is broadening its application to encompass novel query formats, including images and audio.”
Overall, GOOG ranks 8th among the 11 Best Self-Driving Car Stocks to Buy According to Analysts. While we acknowledge the potential of self-driving car companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame.
If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Is Alphabet Inc. (GOOG) Among the Best Self-Driving Car Stocks to Buy According to Analysts?
In the rapidly evolving world of autonomous vehicles, Alphabet Inc. (GOOG) has positioned itself as a leading player through its subsidiary, Waymo. As the technology continues to mature, investors are keenly interested in how Alphabet’s stock measures up against its competitors in the autonomous driving space. Analysts have been weighing in on whether Alphabet Inc. is among the best self-driving car stocks to consider for investment.
The Growth of the Autonomous Vehicle Market
The promise of self-driving technology is enormous. Industry analysts project that the global autonomous vehicle market will grow from approximately $24 billion in 2020 to an estimated $127 billion by 2030, showcasing the potential for significant returns on investment. Companies involved in this space, like Alphabet, Tesla, General Motors, and Ford, are working on various strategies to secure their share of this lucrative market, which is expected to revolutionize transportation, logistics, and even urban planning.
Waymo: A Pioneer in the Space
Waymo has been a pioneer in the development of self-driving technology. Started as Google’s self-driving car project in 2009, Waymo has since evolved into an independent subsidiary of Alphabet. The company has logged millions of miles in driving data, allowing it to refine its algorithms and sensor technologies substantially. Waymo has also launched the first commercial self-driving taxi service in Phoenix, Arizona, allowing users to hail rides through its app. While the service is currently limited, it represents a significant step toward mainstream adoption.
Analyst Opinions: A Mixed Bag
Analysts are divided on whether Alphabet is a strong buy in the context of self-driving technology. Some analysts highlight the substantial investments and research that Alphabet has dedicated to Waymo, arguing that its advancements in artificial intelligence and machine learning offer a competitive edge. For instance, the company’s focus on safety and efficiency in self-driving cars has positioned Waymo as one of the most advanced players in the industry.
On the other hand, some analysts point to several risks associated with investing in Alphabet for its self-driving technology. Notably, the company faces stiff competition from companies like Tesla, which has already advanced far into the realm of semi-autonomous driving with its Autopilot feature. Moreover, traditional automotive giants are not sitting idle; companies like General Motors and Ford are ramping up their investments in autonomous driving technologies to catch up with tech-driven firms like Alphabet.
Financial Performance and Market Sentiment
Looking at Alphabet’s overall financial health, it remains robust. With a market capitalization of over $1.7 trillion and significant revenues primarily derived from digital advertising, Alphabet has the financial muscle to continue investing in Waymo and other ventures. In its latest earnings report, Alphabet demonstrated strong revenue growth, a testament to its diversified business model: even if the self-driving project takes time to become profitable, the company’s other segments are thriving.
Market sentiment is cautiously optimistic regarding Alphabet’s self-driving efforts, particularly as they become increasingly integrated into urban environments where traditional cars may face restrictions. Analysts predict that as cities evolve to embrace autonomous vehicles, Alphabet’s early investments will pay off handsomely.
Pros of Investing in Alphabet for Autonomous Driving
Strong R&D Capabilities: Alphabet’s extensive resources enable it to lead in artificial intelligence and machine learning, critical components for self-driving technology.
Established Market Presence: With its proven track record of safety and reliability, Waymo has already established itself as a leader in the autonomous vehicle sector.
Diversified Portfolio: Even if self-driving technology takes longer than expected to materialize, Alphabet’s diverse revenue sources cushion investors.
- Long-Term Vision: Alphabet’s strategic investment and focus on long-term goals rather than short-term profits make it an appealing investment for those looking to benefit from future technological advancements.
Cons to Consider
Regulatory Hurdles: The path to widespread adoption of self-driving cars is fraught with regulatory challenges, which could delay the deployment of these technologies.
Intense Competition: Tesla, traditional automakers, and tech startups are aggressively competing in the self-driving arena, which could limit Alphabet’s market share.
- Profitability Timeline: There’s no guarantee that Waymo or Alphabet’s self-driving initiatives will achieve profitability in the near term, leading to potential volatility in stock prices.
Conclusion
While Alphabet Inc. (GOOG) faces a competitive landscape in the self-driving car market, its strong position, unparalleled technological advancements, and significant market resources make it one of the more compelling options for investors interested in autonomous driving stocks. Analysts provide a mixed picture, with a range of insights reflecting both optimism and caution. For those with a long-term investment horizon who are willing to navigate risks, Alphabet may very well be among the best self-driving car stocks to buy. As the landscape continues to evolve, ongoing monitoring will be essential to gauge the company’s progress and its future prospects in this transformative industry.
Alphabet Inc.’s (GOOG) self-driving car division, Waymo, has garnered significant attention from analysts due to its advancements in autonomous driving technology. Morgan Stanley, for instance, has maintained an "Overweight" rating for Alphabet, setting a price target of $210, highlighting Waymo’s impressive performance and growth prospects. (gurufocus.com)
Additionally, as of March 2025, the consensus among 24 contributing investment analysts is a "Moderate Buy" rating for Alphabet, reflecting confidence in the company’s overall performance, including its autonomous driving initiatives. (pricetargets.com)
These evaluations suggest that Alphabet’s investments in self-driving technology, particularly through Waymo, are viewed positively by the analyst community.
Stock market information for Alphabet Inc (GOOG)
- Alphabet Inc is a equity in the USA market.
- The price is 162.42 USD currently with a change of -1.48 USD (-0.01%) from the previous close.
- The latest open price was 164.13 USD and the intraday volume is 20860381.
- The intraday high is 164.9 USD and the intraday low is 160.39 USD.
- The latest trade time is Monday, April 28, 23:04:20 UTC.