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Qualcomm (QCOM) Partners NIO to Spur 5G Backed Autonomous Driving

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In a concerted effort to reinforce the growing influence of electric vehicles (EVs) globally, Qualcomm Incorporated QCOM recently collaborated with NIO Inc. NIO. Per the deal, the company will incorporate its avant-garde autonomous driving technologies in NIO’s first flagship sedan — the NIO ET7.

Markedly, NIO will capitalize on Qualcomm’s much-acclaimed Snapdragon Automotive 5G Platform and 3rd Generation Snapdragon Automotive Cockpit Platform with heterogenous computing capabilities. This will bolster future-proof automotive innovation technologies while delivering immersive interactive experiences to its users.

It is worth mentioning that Qualcomm is known for providing several auto giants with best-in-class digital cockpit technologies in the era of 5G intelligent and connected vehicles. Notably, the alliance will not only enhance NIO’s premium vehicle with improved driving experiences but also highlight the importance of Qualcomm’s expertise in connectivity and computing to meet the rising demand of autonomous vehicles amid smart mobility scenarios.

Headquartered in Shanghai, China, NIO is a well-known automobile company that specializes in the manufacture of smart EVs and autonomous vehicles. With research and development facilities based in Beijing, Munich, Shanghai, San Jose, London along with six other locations, the company is also involved in the first single-seater, all-electric racing series — FIA Formula E Championship.

Interestingly, NIO is also known for launching one of the world’s fastest electric cars, the EP9, in 2016. Supported by industry-leading dimensions, its latest model ET7 is equipped with a futuristic autonomous driving sensing system to enable an enhanced intelligent connectivity experience. Furnished with double-dash daytime running lights, the vehicle’s revolutionary design creates substantial space for all occupants driven by multi-scenario interactions.

Reckoned as first automotive-grade 5G solution, Qualcomm’s Snapdragon Automotive 5G Platform supports 2G, 3G, 5G and LTE connectivity on the back of ultra-low latency to facilitate better security and quality-of-service for mission critical services. It works in conjunction with state-of-the-art technologies like cellular vehicle-to-everything and dual SIM dual active platform that will aid NIO to develop differentiated telematics products for the new-age connected vehicles supported by innovative applications.

Meanwhile, Qualcomm’s 3rd Generation Snapdragon Automotive Cockpit Platform has a unified software framework with high-end AI competences that features immersive graphics, rear seat entertainment, in-car or external camera processing capabilities and premium audio, among other benefits. It is equipped with adaptive human machine interfaces and supports smarter navigation. That said, the recent collaboration is expected to not only reinforce the working relationship of both companies but also boost optimistic approach among Chinese car buyers with the launch of NIO ET7. Markedly, the deliveries of the same are slated to begin in 2022.

Backed by such indigenous products and technology collaborations, the San Diego, CA-based wireless technology company is focused on three areas — computing, connectivity and electrification. Further, it is helping customers experience seamless transition to superfast 5G networks with low-power resilient multi-gigabit connectivity. As one of the prime manufacturers of cutting-edge wireless chipsets, the company is focused on retaining its leadership in 5G with several technological accomplishments.

Qualcomm has a long-term earnings growth expectation of 19.6%. Shares of this Zacks Rank #2 (Buy) company have soared 72.2% compared with the industry’s growth of 39.2% in the past year.

Some better-ranked stocks in the industry are Comtech Telecommunications Corp. CMTL and Sonim Technologies, Inc. SONM. While Comtech sports a Zacks Rank #1 (Strong Buy), Sonim carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech delivered a trailing four-quarter positive earnings surprise of 2%, on average.

Sonim delivered a trailing four-quarter positive earnings surprise of 2.2%, on average.

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