We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where Autoliv, Inc. (NYSE:ALV) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.

The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.

We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.

A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.

To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.

A focus on an anti-whiplash system inside a car, showcasing the detail and precision of the companies automotive parts.

Autoliv, Inc. (NYSE:ALV)

Autoliv, Inc. is a developer, manufacturer, and supplier of passive safety systems for the automotive industry. It provides side-impact airbag protection systems, steering wheels, battery cut-off switches, seatbelts, modules, and components for frontal-impact airbag protection systems, and other products. After falling over 11% this year, the stock has finally regained an upward momentum.

According to 26 different analyst ratings, the company has a highest target price of $140, which means in the best-case scenario, the stock could have an upside of 69% from the current levels. Though the stock has already taken an upward trajectory, it is still trading 1.5% below the lowest Wall Street price target of $84.

As per the guidance announced at the recent quarterly earnings, the company anticipates approximately 2% organic sales growth, supported by sales outperformance relative to light vehicle production (LVP). Operating margin is projected to improve throughout the year. Adjusted operating margin is expected to be in a range of 10% to 10.5%.

The company predicted cost pressure from suppliers and labor inflation to ease in 2025, but things have changed this month due to fresh tariffs. If Donald Trump eases on the tariffs, the bull thesis will be back on track.

Overall, ALV ranks 10th on our list of top auto parts stocks that could surge On Trump’s auto tariff relaxation. While we acknowledge the potential of ALV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALV but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.