Intel's ( INTC Quick Quote INTC - Free Report) division Mobileye and Ford Motor ( F Quick Quote F - Free Report) recently announced an expanded partnership to support the latter’s Level 1 and 2 advanced driver-assistance systems (ADAS)-based vehicles, globally. Markedly, per Society of Automotive Engineers, Level 1 offers steering or brake/acceleration support to the driver while Level 2 offers steering and brake/acceleration support to the driver. However, both systems require drivers to supervise performance of the vehicle. Under the extended agreement, Mobileye will provide its EyeQ family of devices and vision-processing software to improve camera-based detection capabilities for ADAS in Ford vehicles. This involves forward-collision warning; vehicle, pedestrian and cyclist detection; and additional lane-keeping features. Moreover, Mobileye’s technology will support Ford’s Co-Pilot360 driver-assist features such as Lane-Keeping System, Auto High-Beam headlamps, Pre-Collision Assist with Automatic Emergency Braking and Adaptive Cruise Control with Stop-and-Go and Lane Centering. Notably, Ford will display Mobileye’s name in vehicles through the inclusion of its logo in the automaker’s SYNC ADAS communication displays. The move reflects the auto-maker’s confidence-building exercise among its customers as well as growing popularity of Mobileye. Further, Ford will put Mobileye’s technology into its next-generation production vehicles including F-150 and Mustang Mach-E, as well as future products that offer ADAS features. Mobileye Strengthens Intel’s ADAS Footprint Mobileye’s acquisition has helped Intel rapidly penetrate the autonomous car technology market. Per Research And Markets latest projections, the global autonomous cars market is expected to witness a CAGR of 16.84% between 2020 and 2023 to reach $37.22 billion at the end of the time frame. Markedly, in May, Intel announced that it has acquired Moovit, a mobility-as-a-service solutions company, for approximately $900 million ($840 million net of Intel Capital equity gain).
Mobileye as well as Moovit acquisition improves Intel’s competitive position against the likes of NVIDIA (
NVDA Quick Quote NVDA - Free Report) and Qualcomm ( QCOM Quick Quote QCOM - Free Report) . Notably, NVIDIA is collaborating with Daimler-owned Mercedes-Benz to develop an in-vehicle computing system and AI-computing infrastructure. It is also partnering with automotive companies to enhance innovation in simulation software, automotive sensors, cameras and LiDars to facilitate driverless transport. Moreover, in January, Qualcomm unveiled the first-of-its-kind automotive platform — Snapdragon Ride — which enables automakers to transform their vehicles into self-driving cars using AI. Nevertheless, the low power consumption of Mobileye chips and their ability to create maps for self-driving systems via its Road Experience Management platform have helped Intel, which currently has a Zacks Rank #2 (Buy), establish a footprint in the market.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Deal Wins Aid Mobileye’s Growth Prospects Mobileye recently got an automated vehicle (AV) testing permit recommendation from Germany’s independent technical service provider TUV SUD.The permission allows Mobileye to perform AV testing in urban and rural Germany as well as the Autobahn at regular driving speed of up to 130 kilometers per hour. Moreover, the company inked collaboration with WILLER to launch an autonomous robotaxi service in Japan and markets across Southeast Asia, including Taiwan. Further, Mobileye has announced two new agreements in China and South Korea with the SAIC and Daegu Metropolitan City, respectively. These agreements are likely to expand Intel’s global presence in ADAS and autonomous mobility-as-a-service. These deals are expected to boost Mobileye’s top-line growth. In first-quarter 2020, the division reported $254 million in revenues, up 22% year over year. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021. Click here for the 6 trades >>