AEVA Stock Is Skyrocketing - Is the Hype Really Justified?

Aeva Technologies AEVA, a company that makes special sensors called LiDAR, has seen its stock price explode recently. In just a few months, it shot up around 1,200%! 

Rising from $2.50 in September to $30 today, it even hit a 52-week high of $38.80 at the end of June. This incredible rally added about $1.5 billion to the company's value. On the surface, this surge seems connected to AEVA’s starting to sell its products more widely, including a $50 million investment from a strategic partner and more orders from industrial clients. But the big question is: does this huge stock jump truly reflect Aeva Technologies’ actual performance and future potential?

The reality is that the market for LiDAR technology is still new and developing. While AEVA has found a way to stand out with its unique FMCW-based sensors, it's still unclear if self-driving cars will widely adopt this technology, with some manufacturers reportedly developing their own LiDAR systems in-house. These are rumored to be very cost-effective. This trend of companies building their own tech means there's a smaller overall market for independent LiDAR suppliers like Aeva Technologies, which raises big questions about how much the company can truly grow in the future.

Competition is another key factor here. Rivals like Ouster OUST are bringing in significantly more money, yet their company valuations are often similar to, or even lower than, AEVA's. For example, in the first three months of 2025, Ouster reported $32.6 million in revenues. That's almost 10 times what Aeva Technologies made! Plus, Ouster managed a healthy 41% profit margin. Ouster's yearly revenues are expected to grow around 30% this year, and they are likely to start making a profit much sooner than AEVA. In this context, Aeva Technologies’ $1.7 billion valuation, compared to Ouster's $1.2 billion, might seem questionable. It appears to be pricing in a future that hasn't quite arrived yet. For now, the stock's surge clearly shows investor excitement, but whether this is truly justified will depend on how well AEVA can execute its plans in the coming months and years.

Other Red-Hot Stocks Catching Investors’ Attention

Let's look at a couple of stocks that are really catching our attention right now. First up is D-Wave Quantum QBTS. The company has quickly become one of the top names in quantum computing, with its stock jumping over 1,300% in the past year. D-Wave uses a special type of quantum tech called “quantum annealing,” which is already being used to solve real-world problems in areas like shipping, factory planning, and artificial intelligence. Backing up this momentum, D-Wave’s revenue grew more than 500% in the first quarter of 2025 compared to last year. 

We also have Dave Inc. DAVE, which is turning heads in the digital banking world, with its stock soaring more than 650% over the past year. It’s what’s known as a “neobank” — a bank that runs completely online, mainly through an app, with no physical branches. One of DAVE’s standout features is “ExtraCash,” which gives users small cash advances when needed. In early 2025, demand for ExtraCash jumped 46%, helping push up DAVE’s average revenue per user by 29% compared to last year. 

AEVA’s Price Performance, Valuation and Estimates

Shares of Aeva Technologies have surged nearly 700% in the first half of 2025.

From a valuation standpoint, AEVA trades at a forward price-to-sales ratio of 53, way above the industry. AEVA carries a Value Score of F.

See how the Zacks Consensus Estimate for Aeva Technologies’ earnings has been revised over the past 60 days.

The stock currently carries a Zacks Rank #3 (Hold).

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).

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