LiDAR & 3D Perception Sensors

Rivian Automotive plans to equip its first R2 vehicles with LiDAR and its internally developed RAP1 autonomy computer for employees by the end of 2026, while customer deliveries are now expected to begin in 2027, according to Electrek. The timeline marks a shift from the company's earlier communications, as Rivian introduced the third-generation RAP1 chip last December, rated at 1,600 sparse INT8 TOPS, and said at the time the technology would arrive in late 2026. The R2 launched in June without the new hardware, though a production-ready-looking R2 equipped with LiDAR was later spotted near Rivian's Irvine headquarters. Rivian VP of Investor Relations Chip Newcom said production of the RAP1 system will initially focus on the R2, with employees receiving the technology first before the rollout expands to customers in 2027, leaving the late 2026 target technically intact but initially applying only to employees. Rivian SVP of Autonomy and AI James Philbin said the rollout is expected to begin toward year-end, initially reaching early-adopter customers with R1 Gen 2 vehicles and later Gen 2 hardware revisions, including fleets Rivian classifies as Phase II and Phase III, with the company aiming to extend the technology across its full Autonomy+ fleet later next year. Separately, Lucid Group and Bolt have entered a strategic partnership to develop and launch autonomous mobility services across Europe, jointly developing an autonomous driving system-ready vehicle platform designed to support SAE Level 4 autonomous mobility, while France has begun testing two vehicles to evaluate Tesla's Full Self-Driving system after the Netherlands' road authority RDW provisionally approved it for Dutch roads in April.

Ouster announced surging customer momentum for its Rev8 OS1 Max native color digital lidar, which the company calls the world's first native color lidar, with payload integrators and drone OEMs across the aerial mapping market selecting the sensor for utility corridor inspection, infrastructure management, and defense applications. Powered by Ouster's L4 Max chip, the Rev8 OS1 Max pairs 256 channels of survey-grade 3D range data with native 48-bit color, reaching ±0.25 cm 1σ precision and ±1.25 cm accuracy, twice the precision and accuracy of the previous Rev7 generation, with a spot size up to 50% smaller than Rev7 and 200 meters of range at 10% reflectivity. The sensor carries IP68 and IP69K ingress protection, 100 G shock resistance, and an operating range of -40 °C to +85 °C, and is designed and developed in the U.S. to comply with the statutory supply chain security standards under §164 of the FY2025 National Defense Authorization Act, with Build America, Buy America Act certified versions also offered. Flyability is evaluating Ouster's Rev8 OS0 lidar to unlock native color 3D mapping in hazardous and GPS-denied industrial environments, building on five years of joint innovation, while GeoCue is pairing its TrueView payloads with the Rev8 OS1 Max. Ouster is showcasing the Rev8 OS1 Max at INTERGEO in Munich from September 15-17 in Hall B5 at Booth B5I018.

Pony.ai unveiled a new Level 4 autonomous heavy-duty truck developed with GAC Commercial Vehicle at IAA TRANSPORTATION 2026 in Hannover, Germany. The vehicle is one model in Pony.ai's Gen-4 Robotruck lineup and is built on GAC Commercial Vehicle's T9 battery-electric heavy-duty truck platform, with volume production scheduled to begin later this year for deployment in long-haul freight, dedicated-route logistics and port transportation. It pairs Pony.ai's Gen-4 L4 autonomous trucking system with GAC Commercial Vehicle's fully redundant drive-by-wire chassis, and carries a fully automotive-grade autonomous driving kit with nine lidars, three millimeter-wave radars and 13 cameras for 360-degree sensing coverage. The bill-of-materials cost of that kit has been reduced by 70% versus the previous generation, while transportation costs per ton-kilometer are expected to fall by 30%, and Pony.ai's energy-efficiency algorithms combined with the T9's 0.4 Cd drag coefficient are expected to cut energy consumption by 10% compared with conventional trucks. The launch extends the companies' partnership from Robotaxi into Robotruck, following a strategic cooperation agreement signed on April 16 that led to vehicle testing and validation within five months, and Pony.ai plans to enter European and Middle Eastern markets over the next two years.

Ambarella CEO Fermi Wang said the fabless chipmaker is positioning its system-on-chip portfolio for broader edge AI adoption across enterprise security, consumer video, wearables, automotive and edge infrastructure, speaking at Citi's TMT Conference. Automotive accounts for about 30% of Ambarella's revenue and security remains its largest market, while wearables represented roughly 10% of revenue, according to figures cited by the conference moderator. Wang said the company's Cooper software development kit supports its 15 AI SoCs across a portfolio spanning 1 TOPS to 1,000 TOPS, and he named power efficiency as its primary competitive advantage, calling Qualcomm its largest competitor. Ambarella recorded record automotive revenue in its second quarter and has announced partnerships involving Aurora, Continental and Bosch, and Wang said a single consumer vehicle design win could represent several hundred million dollars of revenue. The company works exclusively with Samsung Foundry and expects its first 4-nanometer chip to enter production, and it is targeting 10% to 15% fiscal 2027 revenue growth, with memory availability and pricing the main uncertainty.

Geely Auto Group announced the launch of the Geely TT under the Geely Auto brand in China, expanding its lineup with an electric sports sedan featuring 800V fast charging, standard LiDAR and an AI-powered cockpit. Alongside the standard trim, Geely launched the limited-edition TT Ultra, which delivers a combined maximum power of 425 kW and accelerates from 0 to 100 km/h in 3.8 seconds, with a chassis tuned by Lotus and a Handling by Lotus badge on each vehicle. Across the range, an 800V electrical architecture is paired with a CATL Shenxing TT battery supporting up to 6C fast charging, adding nearly 500 kilometers of driving range in 11 minutes. Built on Geely's GEA EVO electric architecture, the standard TT features rear-wheel drive, double-wishbone front suspension and five-link rear suspension, and it set a Guinness World Record with a continuous wet-road drift of more than 46 kilometers. All models come with LiDAR and the G-ASD advanced driver assistance system, while the Super Eva AI cockpit assistant supports multilingual interaction; at nearly five meters long with a 2,920 mm wheelbase, the TT offers a flat rear floor and a 23-speaker Flyme Sound system.

Ouster, Inc. announced a strategic partnership with GeoCue to integrate its native color Rev8 OS1 Max digital lidar into GeoCue's TrueView product line, offering survey-grade data for utility and infrastructure industries. The collaboration pairs GeoCue's TrueView 1 payloads and LP360 software with Ouster's 256-channel lidar, which is Build America, Buy America Act (BABA)-compliant, giving customers with domestic production requirements a high-performance solution. Joint flight testing in Huntsville, Alabama led to the selection of the Rev8 OS1 Max, which provides superior precision, expanded operational range of 200 meters at 10% reflectivity, native color integration, and density at speed. GeoCue CEO Frank Darmayan and Ouster CEO Angus Pacala both highlighted the benefits for drone surveying and physical AI applications. Ouster will showcase the Rev8 OS1 Max at the Commercial UAV Expo in Las Vegas from September 1-3, 2026, at Booth #1653.

Chinese electric vehicle giant BYD has begun mass production of chips for 4D millimeter-wave radar. These chips are said to support Level 4 (L4) autonomous driving. BYD plans not only to install these chips in its own vehicles but also to supply them externally. With the start of mass production, BYD aims to strengthen its competitiveness in autonomous driving technology and solidify its market position.

Hugging Face's new Microduck robot, launched Thursday, has sold over 10,000 units, generating more than $4 million in revenue, and is powered by a chip from Shanghai-listed Rockchip that uses ARM technology. The $399 robot, made by Hugging Face's French subsidiary Pollen Robotics, has seen delivery times pushed past the initial Christmas 2026 promise due to high demand. Rockchip's RK3566 chip, which incorporates ARM-licensed tech, is a key vendor for on-device AI, though analysts note it lacks compute resources for complex edge AI. Rockchip reported a 40% year-on-year increase in first-half operating revenue to 2.88 billion yuan ($428 million), with net profit excluding one-time items up over 60%. The Microduck, weighing 1.76 pounds, is both a toy and development platform, and is the second robot from Pollen Robotics, which Hugging Face acquired last year. Just before its release, The Information reported Nvidia agreed to buy Hugging Face for $12.9 billion, though neither company commented. Other startups like Zeroth and Mondo Robotics are also launching similar personal robots at premium prices.

RoboSense Technology reported its 2026 interim results, with total revenue rising 30.2% year over year to RMB 1.02 billion in the first half. Total LiDAR sales volume grew 169.6% to 719,200 units, while robotics LiDAR sales volume surged 510.4% to 282,600 units, cementing its role as the core growth engine. The company expanded beyond LiDAR into three robotics component categories—"Eyes," "Skin," and "Muscles"—with first commercial deliveries beginning in Q3 2026. CEO Mark Qiu said 2026 marks a pivotal inflection point as these product lines move from development to commercialization. The company also unveiled its EOCENE SPAD-SoC architecture and two new chipsets, Phoenix and Peacock, with the E2 LiDAR model now in full-scale production.

Yongxin Optics disclosed its 2026 semi-annual report on the evening of August 26. During the reporting period, it achieved operating revenue of 564 million yuan, up 28% year on year, and net profit attributable to shareholders of the listed company of 95.5241 million yuan. After excluding the impact of exchange rate fluctuations, core business profit grew by double digits or more. The optical components segment became the core growth engine, with first-half sales revenue of 386 million yuan, up 45.75% year on year. Within this, LiDAR business revenue more than doubled. The company has deep ties with global leading LiDAR companies such as Hesai, Innovusion, and Valeo, and has extended its technology to emerging scenarios such as service robots and unmanned delivery. The barcode machine vision business continued to deepen cooperation with leading customers such as Zebra and Honeywell, with complex modules delivered in batches, and it won Zebra's Best Supplier award. Medical optics and semiconductor optics maintained rapid growth, with revenue from core endoscope components rising quickly and sufficient order reserves for core subsystem components of lithography equipment. The microscope business achieved first-half revenue of 170 million yuan, up 3.13% year on year, with the sales share of high-end microscopes rising to 45%. The new-generation confocal microscope completed its iteration and secured multiple important orders. The company invested 160 million yuan to acquire a 20% stake in Jiangfeng Bio, becoming the second-largest shareholder and completing its footprint in the medical optics and high-end microscope segments. The company has achieved full coverage of high-end microscope products priced within 3 million yuan, with the localization rate of its commercialized four-color laser confocal microscope reaching 96%, and its domestic market share jumping from zero to 7%. The national major scientific instrument project led by the company, the Multimodal Nanoscale Resolution Microscope, passed its mid-term acceptance, advancing the industrialization of super-resolution imaging technology with sub-2-nanometer positioning accuracy. Going forward, the company will continue to adhere to its 3 plus 2 business layout and seize opportunities in the physical AI industry.

Hesai Group reported second quarter 2026 results, marking a major turning point as the company expands into a full stack infrastructure platform for robotics and physical AI. Total net revenues reached RMB 861 million or USD 127 million, up approximately 22% year-over-year, with gross margin at 40%. GAAP net income reached RMB 71 million or USD 10 million, an increase of 60% year-over-year, marking the fifth consecutive quarter of GAAP profitability. ADAS lidar shipments increased approximately 60% to over 485,000 units, while robotics lidar shipments grew approximately 193% to over 142,000 units. The company raised its full year 2026 SGI revenue guidance from RMB 100 million to a range of RMB 200 million to RMB 300 million, and expects SGI to reach approximately USD 100 million in revenues and breakeven in 2027.

The Xi Jinping administration has moved into full gear to commercialize humanoid robots. Beijing last week hosted a series of events under the banner of Robot Week, including a global conference to showcase development capabilities and a sports competition to test performance. With state-owned enterprises taking the lead, China has put in place a mass production system mobilizing both the public and private sectors, expanding the front line of the US-China high-tech rivalry. Under the 15th Five-Year Plan, a five-year program starting in 2026, the Chinese government has designated AI-powered humanoid robots as a priority area. On the 19th, it established a consortium of more than 100 organizations, including companies and universities, to achieve early mass production. China's largest state-owned land weapons manufacturer is taking command, and a public-private fund that will contribute about 1 trillion yuan to AI and robotics has also been launched. According to a US research firm, global humanoid robot shipments in the first half of this year totaled about 19,100 units, with Chinese players accounting for more than 97 percent. However, commercialization is still only halfway there. At Unitree Robotics, industrial-use robots account for less than 10 percent of revenue. Humanoid robots are said to have their brains in the United States and their bodies in China. Chinese players remain dependent on the US for AI semiconductors, and Unitree is jointly developing research robots with Nvidia, a major US chipmaker. The Trump administration, wary of Chinese products sweeping the US market, has moved preemptively to tighten regulations. In June, the Department of Defense designated Unitree as a Chinese military company, and in July the Federal Communications Commission restricted certification of its new models. Humanoid robots have become a key battleground for economic security, following semiconductors and drones. But US Treasury Secretary Scott Bessent has stated clearly that he does not want decoupling, arguing that restrictions on China must be limited to strategic areas. The day after Unitree's listing, CEO Wang Xingxing acknowledged that robots are currently less efficient than humans, pouring cold water on the enthusiasm for commercialization. The US-China contest over humanoid robots has entered a prolonged struggle, with mutual dependence still intact.

Amazon plans to dramatically expand its Prime Air drone delivery service, expecting to reach nearly 500 U.S. cities and towns by the end of 2026. The expansion would increase Prime Air's footprint sixfold, giving tens of millions more customers access to drone deliveries of millions of products including groceries, electronics, medications and household essentials, with deliveries arriving in as fast as 30 minutes. Prime Air currently operates from 11 delivery sites serving metro areas including Phoenix, Tampa, Kansas City, Baton Rouge, Detroit, Omaha, Houston, Dallas, San Antonio and Waco, and service will soon launch in the Chicago, Cleveland, Atlanta, Boise and Syracuse metro areas. Most items weighing 5 pounds or less that fit inside a large shoebox are eligible, with Prime members receiving free drone delivery on orders of $50 or more, $2.99 for orders under $50, and $4.99 for non-Prime customers. The announcement comes as the Federal Aviation Administration has proposed rules that would make it easier for certified operators to fly drones beyond a pilot's visual line of sight, a change companies say could significantly reduce costs and allow services to expand more quickly.

Hesai Group reported second-quarter 2026 revenue growth of 22% year over year to RMB 861 million, with gross margin of 40% and GAAP net income up 60% to RMB 71 million, marking a fifth consecutive quarter of GAAP profitability. Total LiDAR shipments exceeded 628,000 units, up nearly 80%, driven by ADAS and robotics demand, and the company announced design wins with Great Wall Motor and Volkswagen-related brands. Strategic growth initiatives generated RMB 45 million in revenue, prompting Hesai to raise its full-year 2026 SGI outlook to RMB 200 million to RMB 300 million, with management expecting the segment to reach about US$100 million in revenue and break even in 2027. For the third quarter, Hesai forecasts total revenue of RMB 1.1 billion to RMB 1.15 billion and LiDAR shipments of roughly 800,000 to 850,000 units, while reiterating its full-year shipment forecast of 3 million to 3.5 million units.

Ouster acquired Stereolabs SAS in February 2026, combining lidar, cameras, AI compute and perception software into an integrated sensing platform for Physical AI and robotics markets. Stereolabs' ZED X Nano became the most successful product launch in Ouster's history, expanding its presence across industrial and robotics applications and generating strong interest from humanoid robotics and robotic manipulation markets. The acquisition is driving cross-selling opportunities, with industrial customers exploring Ouster's lidar and safety-lidar solutions while existing Ouster customers consider Stereolabs cameras. Stereolabs' business is expected to grow at least 40% year over year at the midpoint in 2026, and Ouster is adding manufacturing capacity to support demand through 2027 and beyond. Ouster shares have surged nearly 162% in the last six months and trade at a forward price-to-sales ratio above 12x.

Ouster reported a narrower-than-expected second-quarter loss and record sensor shipments. The company posted a loss of 26 cents per share, beating the Zacks Consensus Estimate of a 31-cent loss, while revenues of $55 million rose 56% year over year and exceeded the $51 million consensus. Ouster shipped more than 17,000 lidar and camera sensors during the quarter, a company record, driven by industrial and smart infrastructure demand. GAAP gross margin expanded to 49% from 45% a year earlier, though a one-time refund boosted the figure by about 1,000 basis points. For the third quarter, Ouster guided for revenues between $54.5 million and $57.5 million.

The global automotive LiDAR market is projected to reach $11.26 billion by 2033, driven by the adoption of advanced Level 2+ and Level 3 automated driving systems in electric vehicles. Growth is supported by the integration of solid-state LiDAR and semiconductor technologies to enhance intelligent vehicle production. The Asia-Pacific region leads in LiDAR adoption, aided by strong intelligent vehicle production and a concentrated supplier ecosystem. Passenger cars are expected to dominate the market, with bumper and grille installations leading LiDAR integration, while Germany remains the largest revenue contributor in Europe.

Aeva Technologies reported a narrower-than-expected adjusted loss of 41 cents per share for the second quarter of 2026, beating the Zacks Consensus Estimate and improving from a loss of 44 cents a year ago. Revenues rose 11.3% to $6.1 million, slightly above the $6 million consensus, driven by professional service revenues that nearly tripled to $3.6 million, offsetting a 39.4% decline in product revenues to $2.5 million. Gross profit swung to $2.2 million from a year-ago loss of $2.7 million, with gross margin reaching 35.7% compared with negative 49.4%, as total cost of revenues fell sharply to $3.9 million from $8.2 million. Operating expenses increased 14.1% to $36.7 million, and the GAAP net loss narrowed to $79.6 million from $192.7 million, aided by a smaller fair-value loss on warrant liabilities. The company also launched an Optical Connectivity business for AI data centers, signed a joint development agreement with a hyperscaler, and advanced automotive programs with Bendix and Daimler Truck, while ending the quarter with $302.9 million in total available liquidity after a $115 million follow-on offering.

Innoviz Technologies reported record second-quarter revenue of $18.1 million, up from $9.7 million a year earlier, driven by non-recurring engineering payments and its first large defense order. The company launched Perciz, a dedicated defense and homeland security brand, and secured a $3.5 million order for several hundred LiDAR units for counter-UAS and perimeter security applications. Management reiterated full-year 2026 revenue guidance of $67 million to $73 million and expects non-automotive revenue to reach 10% of the total in 2026, growing to 20% to 30% in 2027. A new development agreement with a top 10 global automaker for a LiDAR-based perception stack using InnovizTwo and NVIDIA hardware was also announced. The company ended the quarter with $48.5 million in cash and equivalents, and subsequently raised $30 million in a registered direct offering, extending its operational runway into 2028.

The Motley Fool highlights three robotics and automation stocks for investors to consider in August, citing strong growth projections for the industrial robotics market. Rockwell Automation, with a dominant 50% market share in programmable logic controllers in North America, reported second-quarter sales of $2.2 billion and GAAP earnings per share of $3.10. Ouster, a developer of digital 3D LiDAR sensors, saw first-quarter revenue surge 49% to $48.6 million and gross margins of 43%, though it posted a net loss of $17.4 million. Symbotic, an AI-powered supply chain automation company backed by Walmart, reported first-half revenue of $1.3 billion and flipped to a net profit of $22.8 million.

AEye announced that its flagship Apollo lidar sensor has been validated on NVIDIA DRIVE AGX Thor, the compute platform for next-generation autonomous vehicles. The validation confirms sensor-to-compute interoperability with NVIDIA DriveOS and places AEye as a sensor partner in the NVIDIA DRIVE Hyperion Ecosystem. This milestone deepens AEye's collaboration with NVIDIA, which now spans two flagship automotive compute platforms and includes membership in the NVIDIA Halos AI Systems Inspection Lab. OEMs and Tier 1 suppliers building on the NVIDIA DRIVE platform can source Apollo as a pre-qualified sensor, reducing integration risk and shortening the path from system design to deployment.

The global laser sensor market is projected to grow from USD 996.74 million in 2025 to USD 2,888.09 million by 2035, expanding at a compound annual growth rate of 11.2 percent during the forecast period from 2026 to 2035, according to a report by SNS Insider. The Asia-Pacific region held around 40 percent of the market in 2025, with China contributing approximately 44.8 percent of that regional revenue, while North America is expected to grow at a CAGR of 11.5 percent, driven by autonomous vehicle LiDAR and smart factory investments. By application, process monitoring and quality control was the dominant segment in 2025, and distance measurement is forecast to be the fastest-growing segment due to rising LiDAR use in autonomous vehicles and 3D mapping. Laser displacement sensors accounted for about 35 percent of market revenue in 2025, while the laser scanners and LiDAR segment is anticipated to see the highest growth. The industrial automation and manufacturing end-user segment represented roughly 42 percent of total revenue in 2025, and the automotive vertical is projected to grow the fastest, fueled by advanced driver-assistance systems and AI-based quality inspection.

Innoviz Technologies announced it will develop a complete LiDAR-based perception stack for highway driving with a top 10 global automotive OEM. The project will use InnovizTwo LiDAR and perception software running on an NVIDIA-powered compute platform, targeting a highway operational design domain. The stack includes Point Cloud Plus and obstacle detection to classify drivable versus non-drivable hazards, object detection for road users, and object classification into categories such as pedestrians, cars, trucks, and two-wheelers. CEO Omer Keilaf said delivering this stack to automotive-grade standards represents Physical AI providing precise, real-time 3D understanding of the world.

Zacks Investment Research identifies NIO, Mobileye Global, Hesai Group, and Ouster as four stocks poised to benefit from accelerating electric vehicle and autonomous driving adoption. The global EV market saw sales climb 20% year over year to more than 20 million units in 2025, according to the International Energy Agency, with projections of 23 million units in 2026. The autonomous vehicle market is forecast to grow from $3.36 trillion in 2025 to $41.75 trillion by 2034, per Fortune Business Insights. NIO is gaining traction with its expanded lineup including the ES8 and ES9 models and its Onvo and Firefly sub-brands, while Mobileye advances its EyeQ platform and autonomous mobility partnerships with Volkswagen and Stellantis. Hesai expects lidar shipments to nearly double to 3 to 3.5 million units in 2026, and Ouster launched its REV8 native color lidar platform, scaling production through Benchmark Electronics.

Lantronix has announced a strategic collaboration with Estonian-Ukrainian defense technology company DoD Solution to deploy an Edge AI drone platform in Ukraine. The partnership integrates DoD Solution's AURA AI onboard autonomy platform with Lantronix's Qualcomm-based Open-Q 6490CS Solution, providing SWaP-optimized edge compute for FPV drones, fixed-wing UAVs, and interceptor systems. Engineering teams have completed platform integration, and initial production is now underway, with the program ramping to meet growing demand across the region. Lantronix expects the collaboration to expand its presence in the global defense autonomy market and support long-term recurring revenue opportunities through advanced engineering services. The companies aim to accelerate deployment timelines and advance next-generation drone capabilities for European and global markets.

Tesla is embarking on an aggressive spending spree that CEO Elon Musk described as the fastest industrial scale-up in America since World War II. During the second-quarter earnings call, CFO Vaibhav Taneja said 2026 will be a massive CapEx year, as the company reported a record capital expenditure of $5.79 billion for the quarter, a 142 percent year-over-year increase. Total GAAP operating expenses climbed 47 percent year-over-year to $4.35 billion, driven largely by R&D and pre-production ramp costs for new products including the Tesla Semi, Optimus, and Cybercab. Musk said Tesla is prioritizing speed over capital efficiency to accelerate projects and deliver greater long-term value, and he thanked Micron Technology for allocating a significant share of its memory supply to Tesla. The heavy investment follows a strong second quarter in which Tesla posted revenue of $28.24 billion, beating estimates, and delivered 480,126 vehicles.

Madison Small Cap Fund highlighted Indie Semiconductor as a compelling investment in its Q2 2026 investor letter. The fund believes the company's two pending transactions—the sale of a commodity semiconductor business focused on China and the acquisition of an industrial robotics company from Osram—will materially improve its balance sheet and economics, which are not reflected in the current valuation. Madison estimates Indie Semiconductor's intrinsic value at $15 per share, while the stock closed at $3.81 on July 16, 2026, with a market capitalization of $864.5 million. The fund also noted that the depressed automotive semiconductor market is poised for a recovery as inventory overhangs clear, and Indie Semiconductor has significant opportunity to increase content per car through its vision and LiDAR intellectual property.

Hesai Group shareholders approved an 8-for-1 stock split at the annual general meeting on June 26, 2026. The share subdivision became effective on July 10, with dealings in the subdivided Class B ordinary shares beginning that day. The company reported first-quarter earnings per share of 4 cents on revenue of $98.7 million, with total lidar shipments rising 140.9% year-over-year to 471,723 units. CEO Yifan Li described the quarter as a transformative chapter as Hesai evolves from spatial perception to spatial intelligence, noting its role as a strategic lidar partner for Mercedes-Benz models enabling L3 autonomy. Citi lowered its price target on Hesai to $28.60 from $33 while maintaining a Buy rating, citing more conservative revenue and net profit forecasts and a lower multiple due to likely weaker-than-expected second-quarter EV sector shipments.

Leonardo DRS has signed a contract to supply more than 50,000 Tenum Orbit thermal imaging cameras under a blanket purchase agreement. The deal marks a major production milestone and reflects growing demand for compact, high-performance thermal imaging systems used in applications including unmanned systems and other rapidly evolving platforms. Jerry Hathaway, senior vice president and general manager of the company's EO/IS business unit, said the agreement demonstrates the strength of its thermal imaging technology and readiness to deliver at scale. The Tenum Orbit module is designed for high-volume production across multiple end uses, including drones, and is backed by investments in factory infrastructure to support annual production in the hundreds of thousands of units.

The global autonomous vehicle edge compute rig market is projected to grow from $3.35 billion in 2025 to $9.14 billion by 2030, at a compound annual growth rate of 22.5%. Growth is driven by rising adoption of advanced driver-assistance systems, real-time vehicle data processing needs, AI integration in automotive systems, and the expansion of connected vehicles and high-performance sensors. The increasing demand for low-latency edge computing in autonomous driving, accelerated deployment of Level 3-5 autonomous vehicles, and expanded investment in mobility-as-a-service platforms and vehicle-to-everything communication are also fueling the market. Major players include Tesla, Robert Bosch, NVIDIA, Continental, and Qualcomm, with North America leading the market in 2025 and Asia-Pacific expected to be the fastest-growing region during the forecast period.