U.S. Markets open in 1 hr 47 mins

Intel's (INTC) Mobileye Wins Deals in China and South Korea

Zacks Equity Research

Intel’s INTC Israel-based autonomous driving unit — Mobileye — has announced two new agreements with SAIC, China and in Daegu Metropolitan City, South Korea.

The agreements are directed toward fortifying the company’s global footprint in driver-assistance systems (ADAS) and autonomous mobility-as-a-service (MaaS).

More on the Latest Agreements

SAIC is a leading Chinese OEM and plans to use Mobileye’s Road Experience Management (REM) mapping technology for deployment of L2+ ADAS. The SAIC deal is Mobileye’s first design win with a major Chinese automaker.

Notably, the SAIC vehicles will contribute to Mobileye’s RoadBook by providing information on China’s roadways and creating a high-definition map of the country.

SAIC will therefore join other global Mobileye-OEM partners in collecting road data to enable universal real-time high-definition mapping.

The deployment of Mobileye’s mapping solutions in China is expected to provide other OEM partners with opportunities to enter the region’s autonomous vehicles market with map-related features.

Further, leaders of the Daegu Metropolitan City in South Korea have collaborated with Mobileye to test and deploy robotaxi-based mobility solutions.

The robotaxi will be powered by Mobileye’s autonomous vehicle technology, which will enable a driverless MaaS operation. The deal depicts how Mobileye is quickly scaling its autonomous MaaS ambitions globally.

Intel Corporation Price and Consensus

 

Intel Corporation Price and Consensus

Intel Corporation price-consensus-chart | Intel Corporation Quote

 

Boosting Foothold in Self-Driving Space
 
The news regarding the SAIC and Daegu City agreements came a day after Intel released a video showcasing Mobileye navigating through streets of Jerusalem, with the help of 12 on-board cameras and no sensors. By evading the use of sensors, the demo provided by Mobileye is considered a breakthrough in self-driving vehicles space.

Additionally, Mobileye holds an agreement with RATP in partnership with the city of Paris to bring robotaxis to France. The unit has also collaborated with UniGroup and NIO in China as well as a joint venture with Volkswagen and Champion Motors to operate an autonomous ride-hailing fleet in Israel.

Considering these developments, it is quite clear that Mobileye is determined to fulfill its targets in the autonomous vehicles space.

Mobileye’s sales came in close to $1 billion in 2019. Moreover, it expects the metric to rise double-digits this year. In fact, Mobileye expects the autonomous MaaS total addressable market to reach $160 billion by 2030.

Wrapping up

Intel’s moves to bolster presence in the autonomous vehicle market is likely to give tough competition to major players like Alphabet’s GOOGL Waymo, Qualcomm QCOM and Nvidia NVDA.

With strong growth prospects in the autonomous vehicles space, Intel’s efforts to boost presence in this arena are likely to yield in the near term. This is likely to drive the company’s top line.

Zacks Rank

Intel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.