Driverless cars could reach public roads worldwide within the next decade , according to most industry forecasts. As a result, many companies are expanding into driverless technologies, like computer vision chips and navigation systems.
But before you invest in companies that are tapping into the growth of this fledgling market, you should read these three tips about the driverless market.
1. Understand what the company sells
Plenty of chipmakers claim to sell chips for driverless cars, but investors should understand the differences between these chips.
NXP (NASDAQ: NXPI) and Texas Instruments (NASDAQ: TXN) , for example, manufacture automotive chips that control a wide variety of functions within standard, connected, and driverless cars.
Nvidia (NASDAQ: NVDA) and Qualcomm (NASDAQ: QCOM) sell ARM-based processors for infotainment and navigation systems.