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The Zacks Analyst Blog Highlights: Intel, Google, Qualcomm, General Motors, Nvidia and Baidu

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For Immediate Release

Chicago, IL – September 28, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intel Corporation (INTC - Free Report) , Alphabet Inc. (GOOGL - Free Report) , QUALCOMM Incorporated (QCOM - Free Report) , General Motors Company (GM - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Baidu, Inc. (BIDU - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Race to Deliver Autonomous Vehicles Revs Up: 5 Majors in Focus

The rapid development in the self-driving vehicle space can primarily be attributed to breakthroughs in technology, with the integration of robust AI and ML capabilities in the advanced driver-assistance system (ADAS).

Moreover, improving neural networking capabilities, and advancements in digital mapping and obstacle-recognition functionalities are expected to lead to safer navigation, reduction in accidents and commuter comfort.

The automotive industry bigwigs are making every effort to enhance the safety of passengers and drivers in EVs and self-driving cars, and foot-travelers in transit. Consequently, advanced testing methodologies are in huge demand as automakers and tech companies seek to deliver advanced ADAS systems.

Despite the coronavirus pandemic-led crisis, the optimism in this space is evident from the notable performance of Global X Autonomous & Electric Vehicles ETF (DRIV), which has gained 8.9% year to date compared with the rise of 0.5% recorded by SPDR S&P 500 ETF Trust SPY.

Immense Growth Prospects

Per MarketsandMarkets data, the ADAS market is set to hit $83 billion by 2030 from $27 billion in 2020, witnessing a CAGR of 11.9%. Ongoing momentum of mobility as a service (MaaS) solutions and the accelerated deployment of 5G are anticipated to be tailwinds.

According to a report by Grand View Research, the self-driving car and truck market is projected to hit 6.7 thousand units in 2020 and is envisioned to grow, witnessing a CAGR of 63.1% from 2021 to 2030.

Additionally, autonomous vehicles are set to revolutionize the concept of transport, while contributing significantly to the global economy. Per data from McKinsey research, autonomous vehicles are expected to contribute to 66% of the passenger-kilometers traveled in 2040, while generating $1.1 trillion in mobility services’ revenues and $0.9 trillion in sales.

Mobileye-Powered Robotaxis to Hit Dubai Roads by 2022

On the heels of alluring prospects, Intel is zooming ahead in the autonomous driving industry with its latest developments in the field.

Mobileye in partnership with Al Habtoor Group will devise a fleet of automotive 'robotaxis' that could hit the streets of Dubai by 2022. The multi-million dollar deal will start by deploying Mobileye’s system into 1,000 cars to map Dubai and collect data.

The testing of the autonomous vehicles is slated to commence in 2021, with a pilot program slated for by the end of 2022. A commercial service is planned for 2023, with a target of a few hundred vehicles within five years.

Furthermore, Intel’s Mobileye recently announced that its SuperVision surround-view ADAS platform will power Geely Auto Group’s Lynk & Co brand’s highly awaited premium electric vehicle (EV) — Zero Concept. Markedly, Geely Auto Group is one of the leading auto manufacturers based in China.

Also, Mobileye and Geely have inked long-term “high-volume ADAS agreement” aimed at equipping a variety of Geely Auto Group’s models with Mobileye vision-sensing technology.

Markedly, the increasing proliferation of ADAS and the ramp-up of new IQ programs are expected to bolster Mobileye’s revenues. The low power consumption of Mobileye chips and the ability to create maps for self-driving systems via its Road Experience Management platform helped Intel, which is currently carrying a Zacks Rank #3 (Hold), to gain a footprint in the market.

Google’s Waymo Efforts Ring the Bell

Alphabet has been aggressively strengthening Waymo initiatives, which are likely to help it in staying ahead of the curve. Moreover, it enjoys a first-mover advantage in the Level 4 Cars race.

Reportedly, Waymo plans to start the company’s road testing of its driverless fleet in a new hub in Dallas, TX. The fleet will consist of Peterbilt 18-wheelers, complete with cameras, lidar and on-board computers.

The company also acquired Latent Logic, a British AI company that specializes in a form of machine-learning namely imitation learning, which is expected to make the simulation technology of Waymo more advanced and realistic. This, in turn, will strengthen the behavior prediction capability of Waymo.

At CES 2020, this Zacks Rank #3 company announced that Waymo vehicles have driven more than 20 million miles since its introduction in 2009. The feat was made possible, courtesy of its innovative AI skills and deep learning techniques.

Qualcomm’s Snapdragon Ride Does the Talking

Qualcomm’s expanding presence in the autonomous vehicle market remains noteworthy. The company raised the bar for driverless cars as it unveiled the first-of-its-kind automotive platform — Snapdragon Ride — which enables automakers to transform their vehicles into self-driving cars using AI.

Notably, Qualcomm also signed an extended partnership with General Motors to deliver avant-garde self-driving technologies, with a diversified portfolio of automotive solutions. Moreover, vehicle partners — Audi, Ford and Ducati — once demonstrated how Qualcomm's 9150 C-V2X chipsets can be used between vehicles for tasks like negotiating the right of way. Qualcomm currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NVIDIA’s Presence Can’t be Ignored

NVIDIA is partnering with automotive companies to drive innovation in simulation software, automotive sensors, cameras and LiDars to facilitate driverless transport. The company is working with more than 320 automakers, tier-one suppliers, automotive research institutions, HD mapping companies and start-ups to develop and deploy AI systems for self-driving vehicles.

The Zacks Rank #3 company also introduced Drive AGX Orin, which is a highly advanced software-defined platform for autonomous vehicles and robots powered by a new system-on-a-chip (SoC) called Orin that consists of 17 billion transistors.

The company expects its automotive TAM to be $30 billion by 2025, which comprises $25 billion for driving, $3 billion for training/development of deep neural networks and $2 billion for validation and testing.

Baidu Strives to Bridge the Gap

Baidu, which carries a Zacks Rank #3 at present, recently revealed that the Apollo Go Robotaxi service is now available in Beijing, China.

The service covers about 700 kilometers across China, and features about 100 pick-up and drop-off stations across several residential as well as business areas in the Yizhuang, Haidian, and Shunyi districts of China.

Reportedly, Apollo Go will launch 40 vehicles in Beijing. These robotaxis can be booked directly through the Baidu Maps mobile app or the Apollo website.

In addition to Beijing, the company made the Apollo Go robotaxi service available in China-based cities of Changsha and Cangzhou. This makes Baidu the only company with robotaxi pilot operations in multiple cities across China. Additionally, the company teamed up with Volvo to launch Level 4 vehicles in 2021.

Conclusion

The coronavirus pandemic is bringing the importance of autonomous vehicles to the forefront, prompting us to reconsider the future of transport and focus on how fully-autonomous vehicles can address safety issues that come with the crisis. The coronavirus situation is now expected to hasten the adoption of driverless vehicles to pick up passengers, transport goods and others.

Markedly, autonomous driving, which combines semiconductors, simulation software, electronics testing equipment and measuring instruments, predictive algorithms, and AI, is set to come mainstream sooner than anticipated.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.