2 Artificial Intelligence (AI) Electric Vehicle Stocks to Buy With $500. If Certain Wall Street Analysts Are Right, They Could Soar as Much as 60% and 119%.
2 Artificial Intelligence (AI) Electric Vehicle Stocks to Buy With $500. If Certain Wall Street Analysts Are Right, They Could Soar as Much as 60% and 119%.
The market has just experienced two superb years, 2023 and 2024, where the S&P500 soared more than 53% in total, mainly driven by technology and artificial intelligence (AI) stocks. Although 2025 started with some turbulence, many strategists still believe the market will rise again this year and that the tech and AI rally still has weight.
The biggest AI stocks, like those of the “Magnificent Seven,” have dominated the market in 2025, but there are plenty of compelling, smaller AI names with bright futures. Two of them in the electric vehicle (EV) sector are electric aircraft manufacturers. Archer Aviation(NYSE:ACHR) and Chinese electric vehicle company Nio(NYSE:NIO). Both stocks have been quite volatile, so investors may want to start small. However, both companies could generate exceptional returns over time:
German Bank analyst Edison Yu raised his price target on Archer Aviation from $12 to $15 in December and reiterated his buy rating on the stock. This implies a 61% increase from current levels (as of January 10). Meanwhile, the average analyst price target over the past three months is $11.38, according to TipRanks.
Citi Group analyst Jeff Chung raised his price target on Nio from $7 to $8.90 in late September, suggesting a 113% upside from current levels (as of January 10). Meanwhile, the average analyst price target over the past three months is $5.72, according to TipRanks.
Archer Aviation has built an electric taxi plane. The vehicle is designed to perform rapid consecutive flights of 20 to 50 miles, carrying a pilot and four other passengers. The vehicle requires minimal charging time and can fly up to 150 miles per hour, reducing crowded commutes from hours to minutes. The company is working to establish networks in Los Angeles and San Francisco as well as with Chicago and Newark international airports.
Archer has also made significant regulatory progress toward achieving final certification from the Federal Aviation Administration (FAA). For its Midnight vehicle, the company achieved final airworthiness, the FAA Part 135 certification necessary to operate commercial flights, and completed more than 400 test flights ahead of schedule. The FAA also approved a final operational rule, providing a framework for regulators to oversee commercial air taxis.
In December, Archer announced a partnership with Anduril Industries to develop an electric aircraft for defense purposes. The two companies initially plan to partner on a hybrid propulsion aircraft, potentially intended for the American Department of Defense. This announcement led Yu to raise his price target to $15. He believes it could be a multibillion-dollar program generating revenue sooner, as military contracts could be awarded this year.
Archer has a lot to offer, and it seems that a huge opportunity. However, the company is still essentially a startup with no revenue, so investors may want to start small and build their position over time.
Nio has been in business since 2014, manufacturing and selling electric vehicles in China. The company also leverages AI to deliver a compelling experience. Within the company’s digital cockpit is an AI companion that can listen and interact with users to provide a more personalized driving experience. Nio is also developing the capabilities and network for users to swap electric vehicle batteries when they run out of power, which is faster than finding a charging station and waiting for the battery to replace. a vehicle is loading.
The company recently reported record monthly and quarterly deliveries of 73,689 in the fourth quarter of 2024. However, the stock has struggled over the past year. Nio has faced challenges in the electric vehicle sector, such as costs and competition, and difficulties with the Chinese economy, which faces deflationary issues and a housing crisis.
Chung, however, became optimistic because of the launch of Nio’s more affordable Firefly brand, a smaller boutique car with prices starting at around $20,000. The car is expected to compete with similar vehicles created by Mercedes And BMW. Even though electric vehicles appear to have a bright future and the Chinese economy presents a huge opportunity, Nio also faces near-term challenges, another reason why investors might want to start with a smaller, more speculative position .
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Citigroup is an advertising partner of Motley Fool Money. Bram Berkowitz holds positions within Citigroup. The Motley Fool has no position in any of the securities mentioned. The Motley Fool has a disclosure policy.
