UBS has named its top technology stock picks to ride the electric vehicle revolution. “As EV penetration grows and autonomous driving emerges, we see exponential growth within tech supply chains,” UBS’ analysts, led by Grace Chen, said on June 17. They expect 2026 to be an “inflection point” for electric vehicles, when the global EV market will surpass the combined market size of personal computers, smartphones and servers. And rising electrification and automation will drive up electronic content per vehicle — presenting tech companies with a key growth opportunity, Chen said. Within the tech sector, UBS believes semiconductor suppliers will likely benefit the most, given the substantial increase in semi content in an EV. The bank expects global semi sales to increase more than three times from $30 billion in 2015 to $109 billion by 2030, driven by advanced driver-assistance system (ADAS) and powertrains. Stock picks Within the power semi space, UBS likes Infineon , which it thinks is “one of the biggest and best placed” beneficiaries of the coming EV revolution. It also likes Nvidia within the ADAS space. The bank views the stock as a core holding for any growth portfolio and sees autos as a “rich playing field” for the company. It also sees “ample opportunity” for the company to replicate its partnerships with Mercedes and Jaguar Land Rover. Taiwan’s Delta Electronics also makes the UBS list. The bank believes Delta is “ahead of many Taiwan hardware peers” in exposure to EVs and expects the company to achieve 19% year-on-year profit growth in 2022, driven mainly by its EV portfolio. UBS said it is bullish on Japanese electric motors manufacturer Nidec for its focus on the EV motors business. The bank also sees opportunities for the company in new fields, such as machine tools for EV parts. French automotive supplier Valeo is another stock that UBS likes. It believes the company is one of the best-positioned auto suppliers to grow market share in EV powertrains. Another analyst favorite is Irish automotive supplier Aptiv , which UBS said is one of the best-quality names in the auto space. The bank also thinks the company is well positioned to capture the strength of the U.S. market. German automotive supplier Vitesco Technologies also makes the list. The bank noted that the company has completed its transition toward electrification and now has one of the largest electrification product portfolios. Eyes on Apple More than 50% of the materials used in an EV relate to electronic content, up from just 10% in a traditional internal combustion vehicle, according to UBS. The bank believes tech companies will benefit as EV brands increasingly work directly with them, while the emergence of open platforms will enable tech companies to establish their footprint in the EV ecosystem. “We expect tech companies to accelerate investments in auto, given maturing growth of IT products, and thus gain share in the auto space from a low base,” Chen said. UBS is also keeping a close eye on Apple — should the tech giant decide to enter the EV market. The bank said the company would most likely stick to an asset-light strategy that could turn EVs into a smartphone-like supply chain, according to Chen.
