BofA picks 9 chip stocks to cash in on the electric car revolution

BofA picks 9 chip stocks to cash in on the electric car revolution

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: