Autonomous vehicles — or vehicles embedded with chips and sensors to enable self-driving — have been picking up steam, and several stocks make good plays on the theme, according to Fubon Research. “Automobiles will drive the next industrial revolution, replicating the development of the smart phone industry. As countries are focused on vehicle safety, they are enforcing the installation of ADAS (Advanced Driving Assistance System),” analysts at the research house wrote in a Nov. 27 note distributed by Jefferies. Autonomous and power transportation systems such as electric vehicles are expected to grow at an annual compound growth rate (CAGR) of 24% to hit $324 billion in 2030 — making them the industry’s “largest growth segments,” the analysts added. Providers of sensors and cameras are among the autonomous vehicle related companies on Fubon Research’s watch. The research house’s buy-rated picks include tech giant Nvidia and Taiwanese camera lens supplier Largan Precision . It has a price target of 2,615 New Taiwan dollars ($83.80) for Largan Precision — giving it 13.2% potential upside from its Nov. 28 close — and $680 for Nvidia, or around 42% upside. 3008-TW YTD mountain Year-to-date share price of Largan Precision On Largan, Fubon Research’s analysts pointed out that the company stands to gain from the addition of cameras in autonomous vehicles. “Cameras have become an important part of ADAS and autonomous driving. Besides the need for higher-resolution sensors, one of the key trends in camera development is integrating different types of sensors, including LiDAR and radars. This integration is critical for ADAS and autonomous driving, as it enables a more accurate figure of the surroundings, leading to better decision making by the vehicles,” they wrote. The number of cameras embedded in a car has increased from 5 to around 8 to 15, “or even more,” they added. LiDARs are sensors used to create 3D maps of the surroundings and can detect spatial positions or the velocity of objects in the vicinity, thereby enabling autonomous vehicles to make better decisions. NVDA YTD mountain Year-to-date share price of Nvidia Meanwhile, Nvidia made Fubon Research’s watch list thanks to its development of autonomous vehicle technologies under its NVIDIA DRIVE platform. The feature boasts “hardware, software and workflow required for developing autonomous driving, such as the process from raw data collection to validation, as well as providing end-to-end building modules for neural network development, training, validation, and simulation testing,” the analysts wrote. Other autonomous vehicle-related companies on Fubon Research’s watch list include software and hardware manufacturer Primax Electronics, micro module foundry service provider Tong Hsing Electronic and semiconductor manufacturer Qualcomm Inc . The research house has a neutral rating on all three companies. — CNBC’s Michael Bloom contributed to this report.