We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DXC Technology Arm & LG Partner to Boost Automotive Efforts
Read MoreHide Full Article
DXC Technology’s (DXC - Free Report) subsidiary, Luxoft, recently announced a partnership with LG Electronics to accelerate the development of large-scale series production systems. These include digital cockpit systems, rear seat entertainment, cabin and center stack display, in-vehicle infotainment, and the like.
The joint venture will be carried out via webOS Auto, an open platform for collaboration. Luxoft’s expertise in automotive software engineering will complement LG’s home entertainment technological expertise to enhance next-generation in-vehicle experiences.
The webOS Auto platform is based on Qualcomm's (QCOM - Free Report) Automotive Development Platform and supports various content companies such as iHeartRadio, Mapbox and Cerence.
Notably, this platform aims to compete with existing car infotainment platforms, such as Apple's (AAPL - Free Report) CarPlay and Alphabet’s (GOOGL - Free Report) Google Android Auto.
DXC Technology is trying to take advantage of the growing market for autonomous vehicles. The acquisition of Luxoft last year strengthened its presence in the automotive industry.
Luxoft already has partners like Daimler, whose automotive platforms and IP include autonomous driving systems, human machine interface, toolchain, digital cockpit, user experience, and telematics and IoT for connected vehicles.
Notably, in the second quarter of fiscal 2020, DXC Technology’s revenues from Global Business Services grew 8.2% on a year-over-year basis to $2.29 billion, reflecting strength in the Luxoft business. The acquisition of Luxoft also boosted the company’s digital revenues, which soared 52% year over year to $1.51 billion in the second quarter of fiscal 2020.
Per Researchnester, the in-car infotainment market is expected to witness a CAGR of 9.3% over 2017-2024. Growing number of automobiles on road, increasing middle-class population and adoption of technologically advanced cars are expected to drive growth of the in-car infotainment market in the next few years.
Moreover, per MarketsandMarkets, the advanced driver-assistance systems (ADAS) market is projected to reach $134.9 billion by 2027, at a CAGR of 20.7% from 2019.
The prospects of next-generation automotive systems are prompting more and more tech companies to innovate and develop technologies to secure their presence in the market. For instance, at the recently held CES 2020, Samsung Electronics launched its Digital Cockpit 2020, which leverages 5G to link features inside and outside the vehicle to provide connected experiences for drivers and passengers.
However, though DXC Technology is currently battling the prevalent weakness in its traditional infrastructure business, the firm's sound technical know-how in autonomous vehicle systems positions it to benefit immensely.
DXC Technology currently carries a Zacks Rank #5 (Strong Sell).
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
DXC Technology Arm & LG Partner to Boost Automotive Efforts
DXC Technology’s (DXC - Free Report) subsidiary, Luxoft, recently announced a partnership with LG Electronics to accelerate the development of large-scale series production systems. These include digital cockpit systems, rear seat entertainment, cabin and center stack display, in-vehicle infotainment, and the like.
The joint venture will be carried out via webOS Auto, an open platform for collaboration. Luxoft’s expertise in automotive software engineering will complement LG’s home entertainment technological expertise to enhance next-generation in-vehicle experiences.
The webOS Auto platform is based on Qualcomm's (QCOM - Free Report) Automotive Development Platform and supports various content companies such as iHeartRadio, Mapbox and Cerence.
Notably, this platform aims to compete with existing car infotainment platforms, such as Apple's (AAPL - Free Report) CarPlay and Alphabet’s (GOOGL - Free Report) Google Android Auto.
DXC Technology Company. Price and Consensus
DXC Technology Company. price-consensus-chart | DXC Technology Company. Quote
DXC’s Automotive Push to Boost Growth
DXC Technology is trying to take advantage of the growing market for autonomous vehicles. The acquisition of Luxoft last year strengthened its presence in the automotive industry.
Luxoft already has partners like Daimler, whose automotive platforms and IP include autonomous driving systems, human machine interface, toolchain, digital cockpit, user experience, and telematics and IoT for connected vehicles.
Notably, in the second quarter of fiscal 2020, DXC Technology’s revenues from Global Business Services grew 8.2% on a year-over-year basis to $2.29 billion, reflecting strength in the Luxoft business. The acquisition of Luxoft also boosted the company’s digital revenues, which soared 52% year over year to $1.51 billion in the second quarter of fiscal 2020.
Per Researchnester, the in-car infotainment market is expected to witness a CAGR of 9.3% over 2017-2024. Growing number of automobiles on road, increasing middle-class population and adoption of technologically advanced cars are expected to drive growth of the in-car infotainment market in the next few years.
Moreover, per MarketsandMarkets, the advanced driver-assistance systems (ADAS) market is projected to reach $134.9 billion by 2027, at a CAGR of 20.7% from 2019.
The prospects of next-generation automotive systems are prompting more and more tech companies to innovate and develop technologies to secure their presence in the market. For instance, at the recently held CES 2020, Samsung Electronics launched its Digital Cockpit 2020, which leverages 5G to link features inside and outside the vehicle to provide connected experiences for drivers and passengers.
However, though DXC Technology is currently battling the prevalent weakness in its traditional infrastructure business, the firm's sound technical know-how in autonomous vehicle systems positions it to benefit immensely.
DXC Technology currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>