The push to create autonomous vehicles (AVs) is reaching a pivotal stage, with multiple companies investing billions of dollars in self-driving innovations and vying for dominance. Whether through partnerships or in-house development, the race to deploy robotaxis at scale is set to reshape transportation.
Against this backdrop, AV-focused companies are likely to offer compelling opportunities. The likes of Baidu BIDU, Alphabet GOOGL and Uber Technologies UBER stand out as attractive names to watch.
Autonomous or self-driving cars offer a wide range of advantages that position them to reshape the future of transportation fundamentally. One of the most significant benefits is improved road safety. Human error accounts for the majority of traffic accidents, and self-driving systems —powered by sensors, cameras and artificial intelligence — can reduce collisions by reacting faster, maintaining constant attention and following traffic rules consistently.
Autonomous vehicles also promise greater efficiency and convenience. They can optimize routes, reduce traffic congestion through coordinated movement, and enable smoother traffic flow. For passengers, self-driving cars free up travel time, allowing people to work, relax, or engage in other activities instead of focusing on driving.
Another major advantage is increased mobility and accessibility. Autonomous cars can provide reliable transportation for individuals who are unable to drive, such as the elderly, people with disabilities, or those without access to traditional vehicles. This could significantly enhance independence and quality of life for many users. From an economic and environmental perspective, autonomous vehicles can lower transportation costs by reducing fuel consumption, minimizing accidents, and enabling shared mobility services.
Driverless supply can reduce long-term trip costs, improve reliability during peak demand and offer a repeatable model for integrating more AV partners in new cities. Together, these benefits make autonomous vehicles a transformative force, with the potential to create safer roads, more efficient cities, and a more inclusive and sustainable transportation system.
AV tech is maturing fast, and the companies leading the charge in software, chips and robotics are worth watching. Whether you’re excited about the rise of cleaner, greener cars—or the possibility of never having to drive one again—this space is full of innovation. The heating up of the global AV race is an indication of turning robotaxis from a futuristic concept into a global transportation reality.
With technology improving rapidly, autonomous driving has emerged as a major trend. Better sensors, smarter software, and advances in artificial intelligence are making AVs safer and more reliable. According to Statista, the global AV market could rise from about $106 billion in 2021 to more than $2.3 trillion by 2030.
Given this rosy background, we highlight three stocks with a focus on shaping the future of autonomous mobility from the Zacks Computer and Technology sector that investors should monitor.
All three stocks have outperformed the sector over the past year.
Zacks Investment Research
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Baidu is a key player in the robotaxi space, though its progress is concentrated in China. The country is establishing itself as a global powerhouse in autonomous driving. Its companies have tested self-driving cars in all kinds of conditions—from the busy streets of Beijing to quieter suburban roads.
Baidu’s Apollo Go service already offers fully driverless robotaxi operations in cities like Beijing, Wuhan and Shenzhen, and is spreading internationally in markets like Dubai and Switzerland. With operations in more than 20 cities and fully driverless coverage across key mainland regions, Baidu is building a scale and density that only a few competitors can match. The Zacks Consensus Estimate for Baidu’s 2026 earnings per share suggests a year-over-year improvement of 16.8%. BIDU stock currently carries a Zacks Rank #3 (Hold).
Alphabet’s Waymo is another major player and a force to reckon with in the evolving and lucrative space. Alphabet, through its Waymo arm, already has commercial operations in several cities across the United States.
Waymo has been operating truly driverless vehicles for years and recently crossed 450,000 weekly paid rides, almost double the 250,000 it reported in April. It continues to widen its lead with new expansions, including freeway operations in three cities and autonomous service in markets like Miami, Dallas, Houston, San Antonio and Orlando. Its entire fleet runs without safety drivers. The Zacks Consensus Estimate for Alphabet’s 2026 earnings per share suggests a year-over-year improvement of 4.1%. GOOGL stock currently carries a Zacks Rank #3.
Uber has adopted an asset-light approach through strategic partnerships to gain a stronghold in the robotaxi market. Multiple agreements in this area underscore Uber’s commitment to integrating cutting-edge AV technologies into its platform. With this partnership-driven approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently.
Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.
Uber’s AV ambitions are gaining real-world traction through scalable, cross-market deployments. While macro risks and regulatory scrutiny remain, Uber’s ability to scale both core businesses (mobility and delivery) and emerging automation initiatives positions it well for long-term growth. Uber is focused on unlocking growth in suburban and low-density markets. The Zacks Consensus Estimate for Uber’s 2026 earnings per share has been revised 2.6% upward over the past 60 days. UBER stock currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
