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- As connected cars and autonomous vehicles take over, it could net cell phone carriers $1 trillion annually.
- Morgan Stanley created a basket of the best stocks to own for the automotive tech revolution.
- The list includes tower providers, chipmakers, infrastructure builders, and more that will be required for the data-hungry vehicles.
Back when smartphones were first introduced, mobile data was less than one-tenth of carrier revenue.
Now that smartphones have all but taken over the world, Morgan Stanley is betting that an even bigger disruption will come from the introduction of data-hungry autonomous vehicles. The bank estimates the connected-car revolution could net cell phone carriers more than $1 trillion annually.
But getting there won't be easy - it will take significant investment by telecom services companies, tower providers, and other communications infrastructure providers - to shore up the grid in order for data-hungry cars to take the road.
"The list is populated irrespective of specific 12-month recommendations and so includes some Underweight-rated names, in addition to M Equal-weight and Overweight-rated names," the bank said. "The Morgan Stanley "Connected Autos 25" is meant to provide investors a way into this emerging theme."
We've rounded up the US-traded stocks from the bank's list to put together the 21 best names to own as the connected-car revolution advances:
