We came across a bullish thesis on Aurora Innovation, Inc. (AUR) on Twitter by Conch Shell Capital. In this article, we will summarize the bulls’ thesis on AUR. Aurora Innovation, Inc.'s share was trading at $5.75 as of Oct 11^th.

A medium-duty delivery truck on a road between two cities, symbolizing the company's commitment to transportation.

Aurora Innovation, Inc. (AUR) has four critical factors working for it. Firstly, it boasts a great management team, essential for navigating the complex landscape of autonomous technology. Secondly, the company operates in a giant total addressable market (TAM), with autonomous trucking projected at $1 trillion in the U.S. and $4 trillion globally. Thirdly, Aurora's software creates substantial value by replacing drivers and achieving savings of 26 cents per mile, appealing directly to cost-conscious operators. Lastly, Aurora is the clear market leader, with most competitors having exited the space, establishing significant barriers to entry.

Financial projections further bolster the investment case. While Aurora is pre-revenue now, it anticipates generating $1.3 billion by 2028. Investment expert David believes the stock could appreciate to $8 within two years, from its current price of $3.70. Looking further ahead, it is expected that the company will potentially generate over $10 billion in revenue by 2034, indicating the potential for a 25-bagger from current levels.

These elements combined—strong management, a massive market, valuable product savings, and market leadership—position Aurora as an interesting investment to look into for those interested in the future of autonomous transportation.

Aurora Innovation, Inc. is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held AUR at the end of the second quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of AUR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AUR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.