3 Stocks Flying Under the S&P 500 Radar: Aeva Technologies, Ouster, and AEVA Offer Higher Growth Potential in the Autonomous Vehicle Space

Investors looking to diversify their portfolios can consider small-cap and international stocks, offering higher growth potential, especially in emerging technologies like autonomous vehicles and LiDAR. Aeva Technologies is a notable player in the LiDAR space with a 4D LiDAR system that measures distance and velocity using a unique FMCW technology. Ouster is another defensive play in autonomous technology, with a focus on smart infrastructure and sensor systems.

Investors seeking to diversify their portfolios and capitalize on higher growth potential can consider small-cap and international stocks, particularly in emerging technologies such as autonomous vehicles and LiDAR. This strategy offers exposure to innovative companies that are at the forefront of technological advancements.

Small-Cap Stocks: A Strategic Allocation

Historically, small-cap stocks have traded at a premium to large-cap stocks, but recent trends suggest a significant discount [1]. This presents a compelling opportunity for investors to buy into small caps at attractive valuations. Small-cap investments can offer diversification benefits, secular growth opportunities, and relatively attractive valuations. For instance, realignment of global supply chains and advancements in artificial intelligence (AI) and digital infrastructure are creating new growth avenues for small-cap firms.

Moreover, the resurgence in mergers and acquisitions (M&A) activity positions smaller companies as prime beneficiaries. While policy shifts and global uncertainties may introduce volatility, they also create fertile ground for agile, domestically focused companies to thrive. For investors seeking long-term growth, diversification, and exposure to the most dynamic corners of the US economy, small caps offer not just potential but promise [1].

International Stocks: Emerging Technologies in Autonomous Vehicles and LiDAR

Investors can also look to international stocks for exposure to emerging technologies. Companies like Aeva Technologies and Ouster are notable players in the LiDAR space. Aeva Technologies offers a 4D LiDAR system that measures distance and velocity using a unique Frequency Modulated Continuous Wave (FMCW) technology. Ouster, on the other hand, focuses on smart infrastructure and sensor systems, positioning itself as a defensive play in autonomous technology.

The convergence of AI and autonomous vehicle technology is no longer a speculative concept but a rapidly unfolding reality. Strategic partnerships between NVIDIA, Baidu's Apollo platform, and AEye's lidar innovations are driving this transformation. These partnerships represent a seismic shift in how AI is deployed at scale in real-world environments, unlocking unprecedented opportunities for investors [2].

For example, AEye's Apollo lidar, integrated into NVIDIA's DRIVE AGX platform, has validated its technology in mass-market automotive production. The company's Q1 2025 financials underscore this momentum, with a 160% stock surge post-announcement and a manageable cash burn given its $74 million liquidity runway [2].

Conclusion

Investors looking to diversify their portfolios can consider small-cap and international stocks, offering higher growth potential in emerging technologies. Small-cap investments can provide diversification benefits, secular growth opportunities, and relatively attractive valuations. International stocks in the autonomous vehicle and LiDAR spaces, such as Aeva Technologies and Ouster, present compelling opportunities for investors seeking exposure to innovative technologies.

References

[1] https://www.nasdaq.com/articles/setting-be-small-cap-decade
[2] https://www.ainvest.com/news/strategic-synergy-ai-autonomous-vehicle-innovation-nvidia-integration-apollo-aeye-signals-era-scalable-real-world-ai-deployment-high-conviction-buy-opportunities-driving-car-sector-2507/