UBS has made its top picks in technology to ride the electric vehicle revolution. “With the growth of electric vehicle penetration and the emergence of autonomous driving, we are seeing explosive growth in technology supply chains,” UBS analysts led by Grace Chen said on June 17, and they expect 2026 to be an “inflection point” for electric vehicles, when the global electric vehicle market will exceed the combined market size. For personal computers, smartphones and servers. Chen said increased use of electricity and automation will lead to more electronic content for every vehicle — providing technology companies with a major growth opportunity. In the technology sector, UBS believes that semiconductor suppliers are likely to benefit the most, given the significant increase in semiconductor content in EV. The bank expects near-global sales to more than triple from $30 billion in 2015 to $109 billion by 2030, driven by Advanced Driver Assistance System (ADAS) and engines. Stock Picks Within the semi-super power space, UBS loves Infineon, which it believes is “one of the biggest and best placed beneficiaries” of the upcoming electric vehicle revolution. It also loves Nvidia within the ADAS space. The bank views the stock as a core ownership of any growth portfolio and sees cars as a “rich playing field” for the company. It also sees a “big opportunity” for the company to repeat its partnership with Mercedes and Jaguar Land Rover. Taiwan’s Delta Electronics is also on the UBS list. The bank believes Delta is “outperforming many of its hardware peers in Taiwan” in dealing with electric vehicles, and expects the company to achieve 19% profit growth year-over-year in 2022, primarily driven by its electric vehicle portfolio. UBS said it was bullish on Japanese electric motor maker Nidec for its focus on the electric motor business. The bank also sees opportunities for the company in new areas, such as machine tools for electric vehicle parts. French auto supplier Valeo is another stock that UBS loves. It believes that the company is one of the top premium automotive suppliers in increasing market share in electric powertrains. Another favorite analyst is Irish car supplier Aptiv, which UBS said is one of the best quality names in the automotive business. The bank also believes that the company is well positioned to capture the strength of the US market. Also on the list is German carmaker Vitesco Technologies. The bank indicated that the company has completed its transition towards electrification and now has one of the largest portfolios of electricity products. Eyes on Apple More than 50% of the materials used in electric cars relate to electronic content, up from just 10% in a conventional internal combustion vehicle, according to UBS. The bank believes that technology companies will benefit as more electric vehicle brands work with them directly, while the emergence of open platforms will enable tech companies to make their mark in the electric vehicle ecosystem. “We expect technology companies to accelerate investment in automobiles, given the mature growth of IT products, and thus gain share in automobiles from a low base,” Chen said. UBS is also closely watching Apple – if the tech giant decides to enter the electric vehicle market. The bank said the company will likely stick to a light asset strategy that can turn electric vehicles into a smartphone-like supply chain, according to Chen.