BofA Analysts Highlight Uber's (UBER) Autonomous Vehicle Potential

Uber Technologies, Inc. (NYSE:UBER) ranks among the most active blue chip stocks to buy now. On January 6, BofA Securities reaffirmed its Buy rating on Uber Technologies, Inc. (NYSE:UBER) with a $119 price target, noting the company’s key position in the autonomous vehicle (AV) sector. The firm sees NVIDIA’s autonomous vehicle activities as crucial to Uber’s prospects, pointing out that NVIDIA is a powerful partner working with Uber on expediting the deployment of Level 4 autonomous technology.

According to BofA Securities, Uber Technologies, Inc. (NYSE:UBER) would have greater opportunities of purchasing and renting autonomous vehicles for its network in the event that various AV manufacturers produced Level 4 vehicles. In addition, this would give consumers methods to monetize their AVs through Uber’s platform.

Melius Research, on the other hand, downgraded Uber Technologies, Inc. (NYSE:UBER) from Hold to Sell, citing concerns about increased competition in the AV industry, which might have an impact on Uber’s market share. Melius stated that Uber Technologies, Inc. (NYSE:UBER) has set itself up as a demand aggregator for future AV competitors through partnerships and investments, but cautioned that AV competition is expected to increase in 2026 and beyond, potentially reducing returns even with Uber’s partnership strategy.

Uber Technologies, Inc. (NYSE:UBER) is a prominent global supplier of ride-hailing, food delivery, and freight services. Since its inception, the company has revolutionized urban transportation by bringing drivers and passengers together via its mobile app.

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Disclosure: None. This article is originally published at Insider Monkey.