Qualcomm Incorporated ( QCOM Quick Quote QCOM - Free Report) recently inked definitive agreements with leading car manufacturers to supply automotive chips for their upcoming models. The deals for an undisclosed amount with Volvo ( VLVLY Quick Quote VLVLY - Free Report) , Honda Motor Co., Ltd. ( HMC Quick Quote HMC - Free Report) and Renault SA ( RNLSY Quick Quote RNLSY - Free Report) are likely to sow the seeds for digitizing their product lines. Volvo will leverage Qualcomm's ”Snapdragon Cockpit” chips for the production of its electric SUV, which are likely to go into production this year. It will utilize Alphabet Inc. operating system for hands-free use of Google Assistant and navigation with Google Maps. Honda will use Qualcomm automotive chips for vehicles rolling out in 2023. The company is increasingly focusing on the development of electric vehicles and self-driving cars as it aims to no longer introduce any fossil-fuel vehicles and electrify all its upcoming models. Although Renault did not specify which models will use Qualcomm chips, it aims to work in tandem with Google to design a rich and immersive in-vehicle experience for its next-generation electric vehicles. The car manufacturer had earlier decided to utilize Snapdragon Automotive Cockpit Platforms to power its advanced infotainment system, comprising portrait-sized touchscreen infotainment displays for audio, visual and navigational functions. Qualcomm is reportedly the only chipset vendor with 5G system level solutions spanning both sub-6 and millimeter-wave bands and one of the largest RF (radio frequency) front-end suppliers with design wins across all premium-tier smartphone customers. It is one of the largest manufacturers of wireless chipsets based on baseband technology.
The company is focusing on retaining its leadership in 5G, chipset market and mobile connectivity with several technological achievements and innovative product launches. The chip manufacturer is likely to help users experience a seamless transition to superfast 5G networks, delivering low-power resilient multi-gigabit connectivity with unprecedented range and best-in-class security. This is likely to offer the flexibility and scalability needed for broad and fast 5G adoption through accelerated commercialization by OEMs.
Qualcomm has raised the bar for driverless cars with the launch of the first-of-its-kind automotive platform — Snapdragon Ride — which enables automakers to transform their vehicles into self-driving cars using Artificial Intelligence (AI). Snapdragon's scalable platform comprises the Snapdragon Ride Safety System-on-a-Chip (SoC), Accelerator and the Snapdragon Ride Autonomous Stack. The combination of these self-driving algorithms facilitates a robust architecture of hardware and software that supports advanced driver assistance systems like automatic emergency braking, traffic sign recognition, lane-keeping, self-parking and automated highway driving technology, commonly known as Level 1 and Level 2 systems. This augurs well for its long-term growth proposition. Qualcomm has gained 23.8% in the past year compared with the industry’s growth of 22.2%. Image Source: Zacks Investment Research
We remain impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock. You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here