Oppenheimer Identifies Top 'Physical AI' Stocks in Autonomy, Lidar, and Battery Tech

Investment firm Oppenheimer has identified a group of companies it believes are at the forefront of the “Physical AI” sector, an area encompassing autonomous technology, advanced perception systems, and battery innovation. In a recent research note, the firm pointed to significant industry progress in on-road autonomy, Lidar capabilities, and battery density as key drivers for growth.

The Investment Thesis

Oppenheimer's analysis emphasizes vertical integration as a critical trend, with leading platforms expanding their in-house capabilities and securing supply chains. The firm views perception and battery companies as strategic "pick and shovel plays" on the broader AI theme, suggesting they are well-positioned to deliver strong results as the ecosystem develops.

The firm also noted that potential legislative tailwinds, including the Safe LiDAR Act and the Connected Vehicle Security Act currently in Congress, could benefit domestic technology suppliers.

Oppenheimer's Top Picks

Oppenheimer singled out several companies across the autonomous vehicle and energy storage segments, providing specific catalysts for each.

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Autonomy and Perception Systems

• Tesla (TSLA): Noted as a leader in vertical integration, Tesla is expanding its chip production and advancing its autonomous driving software. The firm highlighted Tesla's recent Q2 automotive delivery beat of 480,100 units, which surpassed consensus estimates.
• Aeva Technologies (AEVA): A perception technology firm that Oppenheimer believes is a likely candidate for a "beat and raise" quarter. The firm sees Aeva as a potential beneficiary of legislation that could favor domestic suppliers over Chinese competitors.
• Ouster (OUST): Oppenheimer raised its price target on the Lidar sensor provider to $57 from $42, citing the company's sensor fusion and software capabilities as a key competitive advantage.
• Aurora Innovation (AUR): The autonomous vehicle technology company is seen as reaching a "critical inflection point" for adoption in commercial vehicles. The company's first-quarter 2026 earnings per share surpassed analyst expectations.

Battery and Energy Storage

• Amprius Technologies (AMPX): Identified as a core "pick and shovel play" set to benefit from sector-wide improvements in battery density and cycle life. The company recently announced a collaboration to supply batteries for Matternet’s M2 delivery drone fleet.
• Electrovaya (ELVA): Another battery firm Oppenheimer expects to deliver strong results. Electrovaya recently secured a significant commercial agreement with Amazon to deploy its battery technology in material handling operations.
• Enovix (ENVX): The battery company is focused on scaling its production and recently appointed a former Apple operations executive as its new Chief Operating Officer to oversee its global manufacturing and supply chain.