Here's how to invest in the coming self-driving boom, JPMorgan says

Published Tue, Jan 10 20175:00 AM EST

JPMorgan on Monday told clients of two companies that may be best positioned to lead the trend in self-driving cars, after analysts at the firm attended presentations from technology companies at the Consumer Electronic Show (CES) in Las Vegas. "CES has become increasingly automotive-centric in recent years, particularly as relates to autonomous driving," equity analyst Ryan Brinkman wrote in a note to clients. Rapid technological advancements in autonomous cars could spark a wave of investment opportunities, creating an industry potentially worth trillions of dollars, Wall Street predicts. Here are two investment ideas from JPMorgan: Delphi Automotive "Delphi demonstrated the most impressive autonomous driving capabilities we have seen to date, reinforcing our view the company is well positioned to be a leader in this burgeoning segment of the auto industry," Brinkman said. The analyst says Delphi's recent acquisition of Movimento, a company that specializes in over-the-air updates of driverless technology, could be a game changer for the company, potentially saving it millions of dollars. Brinkman writes on Delphi's presentation: "We had the chance to ride in a highly autonomous vehicle over a 6 mile course involving heavy real world Las Vegas traffic, in both urban and highway scenarios, with impressively limited human input required. The driving experience was significantly improved over the year prior, speaking to excellence of both its radar, Lidar, and camera sensor suite (it partners with Mobileye in vision systems) and its maturing driving policy and controls. The result was a surreal human driver-like experience." In the next 12 months, JPMorgan believes shares of Delphi could trade as high as $85, implying a gain of 25 percent from Monday's close. The investment bank has an overweight rating on the stock. Visteon The analyst thinks Visteon, which manufactures electronic products such as information displays, could capture a large share of the driverless automobile market, given its technological advancements. "The primary focus of Visteon's investor event was its newly unveiled Phoenix infotainment system which we regard as a path to achieving greater market share in the higher-end infotainment space within the next several years," Brinkman wrote.The technology allows third-party developers to create applications with advance cybersecurity. Investments in the safety space by the company could also unlock value for investors. "At the investor event, management showcased a concept vehicle with active safety features including object detection, collision warning, and lane departure warning technologies," Brinkman wrote. Brinkman says the firm aims to leverage its leading position in displays to enhance the human machine interface on driverless cars, a technology that's widely used by car manufacturers. In the next 12 months, JPMorgan predicts shares of Visteon could trade as high as $87, implying a gain of 6.5 percent from Monday's close. The investment bank has an overweight rating on the stock.

Google's self-driving car, seen at a conference in Paris on June 30, 2016

"CES has become increasingly automotive-centric in recent years, particularly as relates to autonomous driving," equity analyst Ryan Brinkman wrote in a note to clients.

Rapid technological advancements in autonomous cars could spark a wave of investment opportunities, creating an industry potentially worth trillions of dollars, Wall Street predicts.

Here are two investment ideas from JPMorgan: