Synopsys, Inc. (SNPS - Free Report) recently announced that a host of its solutions has been selected by Arbe Robotics for its patented imaging radar meant for advanced driver assistance systems (ADAS) and autonomous vehicles.
Arbe Robotics’ imaging radar has a high resolution and offers a “wide 100-degree field of view” even in difficult conditions such as heavy rains, fog or extreme darkness. The chipset is enabled to support safe autonomous driving level 4 and 5 via capturing a detailed image of the size, location and speed of any object within a range of 300 meters of the vehicle.
The company has adopted Synopsys’ “DesignWare ARC EM Safety Island, EV6x Embedded Vision Processor with Safety Enhancement Package (SEP), Ethernet Quality-of-Service (QoS) Controller IP, STAR Memory System, STAR Hierarchical System and STAR ECC Compiler for its new 4D high-resolution imaging radar system-on-chip (SoC).”
The ASIL D Ready features of Synopsys’ IP are suitable for the strict safety requirements of ADAS. Additionally, “safety documentation, including failure modes, effects, and diagnostic analysis (FMEDA) reports” are anticipated to quicken the pace of the chip’s ISO 26262 Certification.
Notably, in May, Synopsys unveiled the industry’s first ASIL D Ready embedded vision processor IP for applications in ADAS and autonomous vehicles. It provides critical hardware features for safety along with maintenance of high performance. We believe this will provide the company with first mover’s advantage in the market, eventually driving revenues.
Safety First for ADAS
Discussions regarding ADAS and autonomous vehicles often veer toward the reliability and safety-oriented issues of the vehicles. In March, one of Uber Technologies’ autonomous vehicles killed a pedestrian in Arizona, while undergoing test driving.
Following this incident, the governor of Arizona suspended Uber from test driving autonomous cars in the state for an indefinite period. Reportedly, this mishap led NVIDIA (NVDA - Free Report) , the manufacturer of hardware for Uber’s technology, to stop testing of its own self-driving vehicles on roads.
Notably, NVIDIA is currently using NVIDIA DRIVE Constellation, a virtual reality (VR) based autonomous vehicle simulator that enables the virtual testing of autonomous vehicles in diverse conditions. Hence, safety remains a major concern for the companies dealing with autonomous driving and ADAS.
Synopsys’ IP solutions are equipped with self-checking safety monitor, error correcting code (ECC) and programmable watchdog timer. Also, the lockstep feature enables rapid detection of runtime faults and system failures and addresses the need for real-time networking between the connected devices.
We believe that such initiatives on Synopsys’ part will eventually increase its client bases, thereby boosting its top line in the long run. These will also aid the company in competing against peers like Cadence Design Systems Inc (CDNS - Free Report) .
Zacks Rank and Stock to Consider
Synopsys currently has a Zacks Rank#3 (Hold).
A better-ranked technology stock is Citrix Systems, Inc. (CTXS - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Citrix Systems is currently projected to be 9.1%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>