NVDA, QCOM among Cowen’s top chip picks for EV, autonomous-auto future
Semiconductor and software innovations are set to play a major role in the transformation of the auto industry towards electrification and autonomy, according to TD Cowen analyst Joshua Buchalter. Vehicle platform redesigns require advances in semiconductor technologies for power management and processing, with Buchalter predicting that technology companies will take on a greater role in vehicle design. TD Cowen has projected that the total automotive semiconductors market is to grow at a 9% compound annual growth rate (CAGR) from 2023 to 2030, reaching approximately $121 billion. The firm also expects power semiconductors, sensors, and processing technology to grow at 20%, 14%, and 16%, respectively. Based on this growth outlook, TD Cowen has compiled a list of top stocks to own for the “new vehicle of tomorrow.” Among the names mentioned are Allegro Microsystems, which Buchalter said is tied to both electrification and autonomy, and Mobileye, which he said has a first-mover advantage in the advanced driver assistance systems (ADAS) market.
FAQs:
What is TD Cowen?
TD Cowen is an American investment banking and financial services company.
What is TD Cowen’s projection for the total automotive semiconductors market growth?
TD Cowen expects the total automotive semiconductors market to grow at a 9% compound annual growth rate (CAGR) from 2023 to 2030, reaching approximately $121 billion.
What types of semiconductors does TD Cowen expect to have the highest growth rates?
TD Cowen predicts that power semiconductors, sensors, and processing technology will grow at a 20%, 14%, and 16% CAGR, respectively.
Which companies are mentioned in TD Cowen’s top stocks to own for the “new vehicle of tomorrow” list?
Some of the companies mentioned include Allegro Microsystems, Mobileye, Nvidia, and Qualcomm.
Cowen’s top chip picks for the future of EVs and autonomous vehicles include NVDA and QCOM.
Semiconductor and software innovation will be critical to the auto industry’s transformation to electrification and autonomy over the next decade, according to a report by TD Cowen. Vehicle platform redesigns will require semiconductor innovations in processing and power-management technologies, the report stated. TD Cowen’s proprietary model forecasts the total automotive semis market growing at a 9% compound annual growth rate from 2023 to 2030, doubling to around $121 billion. With this in mind, the firm came up with a list of top stocks to own on the “new vehicle of tomorrow”, including Allegro Microsystems. Mobileye, Nvidia and Qualcomm also made the list.