Cruising to Huge Profits
The pulse of the driverless car story is a flutter compared to more hotbed stories like Trump’s trade war and the tech sector’s whipsaw action
But it’s an industry you need to take notice of now because it’s a ground floor opportunity with the promise of incredible returns.
We’ve waited patiently through 2018 for the next extreme innovation that broadly sends tech stocks to new highs.
Very soon I predict this patience will be rewarded.
Automotive industry analysts estimate by 2025 driverless cars could be a $36 billion a year business in the United States alone.
By 2030, analysts predict 95% of all highway miles driven in the United States will be autonomous.
Companies focusing on driverless car technologies aren’t skating to where the puck is (human drivers).
They’re skating to where the puck will be (self-driving vehicles).
Chipmakers Could Win Big
Putting their money where their mouths are, it’s clear many big names in tech believe the driverless car trend will be huge, and soon.
Intel (NASDAQ: INTC), for example, outlined a 2020 road map for self-driving cars earlier this year.
The company announced a fifth-generation self-driving system that will debut in 2020, to be featured in 2022 model vehicles.
This marks a significant transformation.
The opportunity created by the driverless cars is one of those rare market moments where generational fortunes could be made by first movers.
By 2020, 10 million cars with driverless tech could be on our roads, as projected by the chart below.
Another beneficiary of this trend could be Nvidia (NASDAQ: NVDA).
Earlier this summer Nvidia struck a deal that could power them back near their all-time highs.
Engadget reported in July, automaker Daimler and engineering firm Bosch will use Nvidia’s chips to power a new fleet of self-driving taxis.
According to MarketWatch, Nvidia’s new DRIVE Pegasus system will be the platform for all Daimler and Bosch self-driving vehicles beginning in 2020.
The importance of this deal can’t be understated. It’s a huge growth catalyst for the chipmaker.
Especially after its share price fell significantly this year.
But chipmakers aren’t the only way to play this.
Driverless systems need to “see” and react to the ever changing environment around them.
This requires top-line sensor equipment. One of the most promising systems is called Lidar.
Lidar stands for light detection and ranging. It’s the “eyes” that allow a driverless car to “see” the world around it. Albeit in a 3D image map like the one below:
The technology is far from perfect, but is already used in airplanes and helicopters.
With the right tweaks this tech could become a gold standard system for the first fleet of driverless cars.
One way to play Lidar today is with Continental AG (OTC: CTTAY). They’re one of the companies leading the way in Lidar tech.
And there will be many more.
The race to become the first major player in self-driving cars has begun.
This market will be huge.
It’s a huge opportunity for companies working on making autonomous driving possible.
The companies mentioned above could be at the helm of all this.
Ray’s Cannabis Corner
Oklahoma could become the best new case study for medical marijuana profitability.
Yesterday Marijuana Business Daily reported:
“The state has no numerical cap on business licenses, and doctors are free to recommend MMJ for any condition they deem appropriate.”
What this mean for us cannabis investors? With no limits on how MMJ can be prescribed or caps on how many business licences can be approved we now have an untethered market to assess demand.
And as the report notes, the uncapped approach has fueled such a high demand the price of 1 oz of cannabis to $400 in Oklahoma. In contrast, in other markets the same amount sells for $200.
The long-term trend holds true. Powered by demand, the growth of the cannabis industry is just getting started.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily