Maxim Integrated Products, Inc. ( MXIM Quick Quote MXIM - Free Report) recently unveiled DeepCover automotive secure authenticator - DS28E40. DS28E40 comes in a compact, 4mm-x-3mm TDFN package and operates over a -40 to +125 degrees Celsius temperature range. It uses 1-Wire interface, combining power and communication on a single pin, thereby enabling better connectivity. This authenticator IC helps to ensure the usage of only genuine components for many electronic systems, such as advanced driver assistance systems (ADAS) and electric vehicle batteries. Its authentication algorithms are built into the IC in such a way that it provides defense against unauthorized components, in turn enhancing security and safety. We believe Maxim is poised to gain traction with this new authenticator IC as it complies with designers’ product criteria of safety, genuineness, security and enhanced efficiency. Further, the new product will strengthen the company’s product portfolio. Market Prospects
The global automotive endpoint authentication market has been gaining significant traction driven by growing risks of cyber attacks on linked vehicles carrying sensitive information.
Per reports, the global automotive endpoint authentication market is expected to witness a compounded annual growth rate of 15%, and reach $1.2 billion between 2019 and 2026. Other factors that drive this market include the need for endpoint protection in autonomous vehicles to avoid casualties. Also, the advances in vehicle infotainment systems allow businesses to provide enhanced authentication systems to protect them against network threats. Moreover, strict regulatory requirements that compel car manufacturers to produce automobiles with enhanced safety and security technologies are a key catalyst. Growing adoption of infotainment, and safety and driver assistance content in automotive are driving demand for these authenticators. Notably, Maxim is well poised to cater to these growing needs backed by a robust product portfolio. Bottom Line
Maxim’s automotive business has been growing lately. Notably, the automotive segment generated 26% of total revenues during first-quarter fiscal 2021. Further, revenues were up 13% on a year-over-year basis, driven by strength in infotainment, driver assistance and electric vehicle content.
The company is also witnessing increasing customer wins in this segment, which is a positive. This opens up possibilities of further design wins as new car models are prepped for the market. Infotainment, safety and driver assistance content known as ADAS are long-term drivers of the automotive business. The company’s expertise in Automotive Safety Integrity Levels (ASIL) remains a key catalyst. Moreover, the ASIL compliant battery management system remains a market differentiator and will help it sustain momentum in the market. We believe Maxim’s persistent innovation will enable it to provide better services to customers and in turn improve profitability. Zacks Rank and Other Stocks to Consider
Maxim currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include
Alphabet ( GOOGL Quick Quote GOOGL - Free Report) , Etsy, Inc. ( ETSY Quick Quote ETSY - Free Report) and Inuvo, Inc. ( INUV Quick Quote INUV - Free Report) , each carrying a Zacks Rank #2. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Long-term earnings growth for Alphabet, Etsy, and Inuvo is currently projected at 16.9%, 29.2% and 30%, respectively. Legal Marijuana: An Investor’s Dream
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