New Trade for June 1st, 2023

Stocks were flat to kick off June trading as investors remain cautious about debt ceiling deal progress in Washington and potential Fed rate hikes later this month. The major indices closed the month of May with mixed results. Enthusiasm around AI technology stocks helped lift the NASDAQ by 5.8%, while the S&P 500 ticked a modest 0.3% gain, and the blue-chip Dow fell nearly 3.5%.

AI stocks gained traction in the second quarter and analysts say there’s still plenty of room to run. Today, we’re highlighting a mid-cap company at the forefront of AI-integrated technology that’s far superior to anything we’ve seen and is increasingly being embraced by EV makers.

Luminar (LAZR)

Luminar is at the forefront of lidar technology development with products designed to integrate sensors with AI, giving cars autonomous safety features to support a human driver. EV makers are increasingly embracing LiDAR tech for self-driving cars, translating into solid revenue growth for Luminar.

Luminar management aims for triple-digit revenue growth every year for the next five years, and its stock has been gaining momentum. After losing more than 70% of its value in 2022, LAZR is up nearly 45% this year. The stock garners a solid “Buy” rating from the 12 analysts offering recommendations. An average price target of $12 represents a 78% upside from the current price.

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