UBS sees GM as an “opportunity undervalued by the market.” The stock could rise by a third

UBS believes that General Motors shares could rise by 31% thanks to the company’s digital business, which is undervalued by the market. The investment bank reaffirmed its “buy” rating on the automaker’s shares and raised its price target from $102 to $114, according to CNBC.

UBS believes that General Motors’ solutions in the fields of artificial intelligence and software could drive growth in the automaker’s stock. “GM’s digital potential is an undervalued opportunity that the market does not give due consideration to,” said UBS analyst Joseph Spak. In his view, the digital business generates a steady, less cyclical, and higher-margin revenue stream than the company’s core automotive business. The analyst believes this segment deserves a higher valuation multiple.

GM’s digital strategy includes, in particular, AI-powered in-vehicle services and Super Cruise—a subscription-based driver-assistance service. According to Spake, as the proportion of vehicles connected to these services grows, the company gains the opportunity to monetize not only the sale of the vehicle itself but also the entire period of ownership, including when it is resold to other buyers in the used car market.

UBS expects GM's total revenue from this business to reach $9.6 billion by 2036. That’s roughly three times more than it currently generates, CNBC notes. Meanwhile, Spack believes that more detailed disclosure of the digital division’s results in GM’s financial statements could also contribute to a revaluation of the stock.

General Motors began actively expanding its digital initiatives as early as 2025. In October 2025, the company unveiled a series of new software features designed to transform the car from a means of transportation into a “smart assistant.”

The automaker announced at the time that it would begin integrating Google’s Gemini-based voice assistant into its vehicles in 2026. The company believes that this will allow drivers to interact with the car “as naturally as they would with a passenger.” In addition, GM announced the creation of a new centralized computing platform powered by Nvidia processors and the expansion of driver-assistance features.

In 2028, GM plans to launch a driverless driving feature (eyes-off driving)—first on highways, and then on regular roads. It will initially be available on the Cadillac Escalade IQ SUVs.

During trading on September 14, GM’s stock rose 1.8% amid a broad-market sell-off. Since the beginning of the year, the company’s market capitalization has increased by 7.2%, while the S&P 500 index has risen by 11.3%.

UBS's estimate is indeed higher than Wall Street's consensus target: the average target price for GM shares of $104.38 implies 20% upside potential relative to the latest closing price, according to MarketWatch. Twenty of the 26 analysts covering the stock recommend buying it, five are neutral, and only one advises selling.

This article was AI-translated and verified by a human editor