Intel (INTC - Free Report) recently teamed up with Baidu (BIDU - Free Report) to aid it in accelerating various artificial intelligence (“AI”) driven processes, comprising finance, shipping and video processing solutions. We believe this collaboration aimed at delivering innovative solutions is a win-win deal for both the companies.
The collaboration was announced at Baidu’s 2018 ABC Summit in Shanghai. The tie-up is aimed to strengthen applications deployed on Baidu Cloud by leveraging Intel’s AI capabilities.
Intel’s broad-based portfolio is focused on providing AI-driven solutions. It will enable applications deployed on Baidu Cloud with enhanced performance, scalability, storage and edge computing capabilities.
Notably, shares of Intel have returned approximately 37.4% in the past year, against the industry’s rally of 46.8%. In the same period, the stock has outperformed S&P 500 index’s rise of 20.3%.
Enhancing Financial Methods
Baidu’s private financial clouds will be supported by Intel’s Xeon Scalable processors and Math Kernel Library-Deep Neural Network (“MKL-DNN”). The processors and DNN have been selected to boost performance and security in financial services-related solutions for notable banks of China.
Accelerating Shipping Processes& Video Processing
Intel’s OpenVINO toolkit will enable Baidu Cloud to support AI-driven video analysis system. This is in sync with Baidu’s strategy to enhance shipping operations through robust vision applications. This edge-computing system is powered with a camera to better identify and outline any strange incidents on a real-time basis.
Further, Intel’s OpenVINO toolkit and Xeon Scalable processors have been selected to improve performance of iQiyi by accelerating its video processing services. Notably, iQiyi is the Chinese counterpart of Netflix (NFLX - Free Report) . The toolkit will also enable iQiyi to distinguish videos which compromise the content policy and regulation.
Delivering Robust Storage Solutions
Intel’s Optane technology and QLC NAND SSD technology will come in handy in aiding Baidu deliver a robust object storage solution.
Considerable amount of data is generated in this AI-driven era. This calls for a high performance and cost-effective data storage solution. Consequently, this strengthens the prospects of the upcoming new offering.
Making Companies Realize AI Concepts: Key Catalyst
Per Grand View Research data, the AI market is expected to hit $35.9 billion by 2025 at a CAGR of 57.2% with 2017 as the base year. The projected figure takes into account direct revenue sources.
Given the huge growth prospect in the industry, Intel is putting its best foot forward to seize a major share of the projected revenue growth.
The company’s strength in diversified solutions aimed at accelerating AI-based processes position it well to capitalize on the alluring growth prospects.
Zacks Rank &Stock to Consider
Intel carries a Zacks Rank #3 (Hold).
Aspen Technology, Inc. (AZPN - Free Report) sporting a Zacks Rank #1 (Strong Buy), is a stock worth considering in the same sector. You can see the complete list of today’s Zacks #1 Rank stocks here.
AspenTech has a long-term earnings growth rate of 16.5%.
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