2 Stocks That Could Soar, Driven by Billions From Software Innovations. Hint: They Aren't Even Tech Stocks.

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Daniel Miller, The Motley Fool

Fri, July 3, 2026 astatine 10:05 AM CDT 5 min read

The automotive manufacture has agelong been plagued with antagonistic narratives. A superior illustration is that operations are superior intensive and permission automakers with bladed margins, which hurts net imaginable and valuations.

But the automotive manufacture is evolving rapidly to see more bundle and exertion to powerfulness automated driving features, precocious infotainment solutions, and over-the-air updates that tin little costs owed to nary required work halfway visits -- each portion improving the driving experience.

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These factors tin fundamentally alteration automakers arsenic investments, and present are 2 examples of however Rivian Automotive (NASDAQ: RIVN) and General Motors (NYSE: GM) could make billions done unsocial bundle innovations and strategies.

First up: Rivian

Toward the extremity of 2024, Rivian and Volkswagen partnered to make a state-of-the-art, software-defined-vehicle (SDV) architecture that could beryllium utilized crossed the duo's conveyance portfolios. The archetypal concern was significant, the imaginable is massive, and its fiscal implications are already powering Rivian. Let's dive deeper.

Volkswagen's archetypal concern into Rivian was for up to $5 billion, which was rapidly bumped to $5.8 cardinal and would beryllium delivered upon completion of definite objectives and milestones. Upon the precocious 2024 launch, a $1.3 cardinal lump-sum concern was sent Rivian's way, followed by an aboriginal 2025 $1 cardinal tranche, a premix of equity and debt, to implicit operational milestones. After passing wintertime investigating successful the outpouring of 2026, it unlocked different $1 cardinal concern from Volkswagen and besides established the second arsenic Rivian's largest shareholder, displacing Amazon.

Investors request lone glimpse astatine first-quarter 2026 results to spot the interaction Rivian's bundle is having connected its financials. Consolidated gross checked successful astatine $1.28 billion, which was mostly driven by 2 segments: automotive and bundle and services. The erstwhile generated $908 million, oregon a 2% alteration compared to the anterior year, portion bundle and services generated $473 million, a 49% increase.

The gross maturation was positive, but the interaction connected gross nett is arguably much important. The automotive conception gross nett was $62 cardinal during Q1, portion the bundle and services conception gross nett totaled $181 million.

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