Shares of Japanese automotive titan Toyota Motor (NYSE: TM) gained 2.6% through 12:25 p.m. ET Monday after Nikkei Asia reported that Toyota is partnering with local telecom Nippon Telegraph and Telephone (NTT) to develop artificial intelligence (AI) software that can predict an imminent accident and take control of a car to stop it.

Yes, you read that right. Nikkei Asia just called Toyota an artificial intelligence stock, with all that entails for investor optimism.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free ?

What this means for Toyota Motor

It's unclear how car owners will feel about an AI supercomputer deciding on its own initiative to take over control of a car mid-drive. (They might very well not like the idea all that much.)

Investors, however, seem to think the technology will be useful. Investors may be even more intrigued by Nikkei's suggestion that, once Toyota and NTT have the AI working right, they plan to make it available to other automakers, and presumably collect license fees for the privilege.

Nikkei reports that the companies expect to roll out the new AI driving package by 2028.

Is Toyota Motor stock a buy?

It remains to be seen if the new AI project will work out at all, and if it does, whether the resulting license fees will be big enough to move the needle for a gigantic, $305 billion-a-year operation like Toyota.

Personally, I rather suspect it won't be enough to move the needle. That being said, Toyota stock is cheap enough (at just 7.2 times trailing earnings) that it doesn't necessarily have to be considered a successful AI stock to make it a bargain.  A respectable 2.9% dividend yield, and even an annual profit growth rate of 4% or 5% should justify the valuation on this stock.

So long as you believe Toyota can muster up at least a mid-single-digit growth rate over the next five years, I'd say that makes Toyota stock a buy.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,154!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,777!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $406,992!*