Alphabet's Waymo leading in autonomous driving, potential for long-term growth

From Nasdaq: 2025-07-02 05:30:00

Autonomous driving is a hot topic, with Tesla launching its robotaxi service in Austin. However, Alphabet, parent company of Google and Waymo, holds the lead in autonomous driving and is a top pick for investors with a current affordable stock price. Waymo is expanding in major U.S. markets, such as Austin, Miami, and Washington, D.C.

Waymo’s presence in five cities gives it a lead in autonomous driving, but Tesla’s cost advantage may pose a challenge. Waymo’s high vehicle cost could be a barrier, but if it can demonstrate superior safety technology, it may secure success. This ongoing battle is a long-term investment opportunity, with Alphabet’s stock trading at an attractive price.

Alphabet’s stock offers significant upside potential, given its strong performance in Q1 with 12% revenue growth and 49% earnings per share increase. The stock is currently trading at a cheap 19.9 times trailing earnings, undervaluing Alphabet’s successful businesses like Google Cloud and Waymo. Investors should consider buying shares before the price increases.

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Read more at Nasdaq: Here’s My Top Autonomous Driving Stock (Hint: It’s Not Tesla)