Nomura analysts expect BYD’s new advanced driver assistance system (ADAS) to serve as a meaningful tailwind for the company’s suppliers.
Two of them in particular that the investment firm sees benefitting from the EV maker’s DeepSeek-enabled ADAS it’s calling “God’s Eye” are Horizon Robotics and Hesai Technology.
Nomura is convinced that both these companies will “enjoy solid growth ahead.”
Let’s take a closer look at what these Chinese stocks have in store for investors.
Horizon Robotics (HKG: 9660)
Horizon is one of the key suppliers of chips that BYD uses in its electric vehicles.
Nomura’s view is in line with Wang Chuanfu – the founder and chairman of the Chinese automaker who said semiconductors will play a central role in the future of electric vehicles at an event in 2024.
Investors should also note that Nomura is not the only investment firm that’s bullish on Horizon Robotics.
Goldman Sachs analyst Allen Chang also raised his price target on the Beijing headquartered chipmaker last week to 6.95 HKD (89 cents).
With another push by major car manufacturers to bring smart driving to lower-priced cars, we’re positive on the ability of Horizon Robotics, as one of the leading smart driving chip providers in China.
Chang expects the company’s Journey 6 chips series that is particularly suitable for EVs to make up as much as 40% of its revenue in 2027 versus only 3.0% this year.
Nomura and Goldman Sachs’ bullish call on Horizon Robotics is interesting also because the chip stock has already rallied more than 100% since the start of 2025.
The company went public in October of 2024.
Hesai Group (NASDAQ: HSAI)
Nomura expects “God’s Eye” to unlock further upside in shares of Hesai Tech as well.
That’s because the Shanghai headquartered firm provides lidar that enables driver assistance features in vehicles, including those from BYD.
The firm’s analysts are convinced that BYD’s latest ADAS will push other automakers to step up their game in smart driving, which may increase demand for the related components and help Hesai stock rally in 2025.
HSAI is currently facing restrictions from the US government for its involvement in China’s military-civil fusion programme.
Still, analysts at Goldman Sachs recently upgraded the stock to “buy”.
The new product cycle could push Hesai shares to $18.40 by the end of 2025, they told clients in a recent report.
Note that HSAI has already quadrupled since late November.
Much of that rally was related to the strength of the company’s financials.
In its latest reported quarter, Hesai Technology shipped 129,913 units of ADAS lidar – up a whopping 220% on a year-over-year basis.
That said, both Hesai and Horizon Robotics stocks remain unattractive for income investors as they do not currently pay a dividend.
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