An Uber car equipped with cameras and sensors drives the streets of Washington, DC, on January 24, 2020.
Eric Baradat | AFP | Getty Images
Demand for low-emission cars as well as new safety technology is stimulating a “disruptive” market for automotive chips, according to analysts at Bank of America, who have hailed the arrival of electric vehicles as a fast-growing “megatrend.”
Semiconductor chips are a key component of “hyper-growth areas” such as batteries, in-car computing and connectivity systems, as well as advanced driver assistance systems, shortened to ADAS and is the technology behind self-driving cars.
The investment bank’s analysts led by Vivek Arya picked three top stocks set to benefit from this trend. They also listed several other firms with “best-in-class profitability,” “high growth prospects” and “superior long-term growth profile.”
Bank of America‘s stock picks include: