We might see Uber Technologies Inc. (NYSE:UBER) riding the next wave of the autonomous revolution with a revolutionary tie-up between General Motors Co. (NYSE:GM) and Nvidia Corp. (NASDAQ:NVDA). With GM leveraging Nvidia's AI brawn to create autonomous driving technology, Uber stands to gain significantly as the ride-hailing sector moves closer to an autonomous future. And for investors looking to cash in on this trend, certain ETFs could be the way to go.
ETFs That Could Benefit
If you're looking to play the Uber angle in this self-driving shake-up, here are some ETFs that offer solid exposure:
iShares U.S. Transportation ETF (BATS:IYT)
Why It Matters: Puts emphasis on leading transportation and logistics companies and Uber's AV aspirations may accelerate its long-term growth. Holds Uber as one of its core holdings, allocating over 19% to it currently.
Cambiar Aggressive Value ETF (NYSE:FTXR)
Why It Matters: Seeks long-term capital appreciation by way of an alpha-generating strategy. The firm suggests this fund for investors with higher risk tolerance. 5.85% of the fund is allocated to Uber.
Pacer US Cash Cows Growth ETF (NYSE:BUL)
Why It Matters: Targets capital appreciation by mirroring the S&P 900 Pure Growth Index for the top 50 companies based on free cash flow yield. 6.54% of the fund is dedicated to Uber.
The Uber Connection
GM's recent partnership with Nvidia is a big bet on AI-powered automation, leveraging Nvidia's AI know-how to speed up its autonomous push. The automaker previously deployed Nvidia's chips in its Cruise robotaxis, and now it's turning to driver-assistance technology for consumer vehicles. GM estimated that its Super Cruise technology would bring in $2 billion a year within five years, thus upping its competitive presence.
Uber's not sitting on its hands, either. The ride-hailing company has already partnered with GM's Cruise unit, seeing a future where Uber passengers might order up self-driving Chevys run by Nvidia's AI. CEO Dara Khosrowshahi has indicated clearly enough -Uber views self-driving technology as a tremendous core of its long-term plan.
With Uber, GM and Nvidia pushing the boundaries of AI-driven transportation, the investment opportunities are hard to ignore. If you're looking for a way to ride this wave, these Uber-focused ETFs might be your best bet.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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