DXC Technology (DXC - Free Report) recently announced that it is partnering with BMW to support the latter’s autonomous vehicle development efforts with its digital solutions and a High Performance D3 platform.
The collaboration will accelerate engineering and testing cycles, thus promoting research and development on autonomous driving.
DXC Technology’s services will help BMW simplify data analysis and use algorithmic training to cut down on cost and time taken to develop autonomous vehicles. BMW’s self-driving test vehicles generate massive amount of road travel sensor data, which will be supported by the High Performance D3 platform.
Moreover, DXC Technology’s digital solution will enable BMW’s R&D teams to connect, store and manage vehicle sensor data quickly, resulting in faster autonomous drive development cycles.
DXC’s Automotive Push to Boost Growth
The company is trying to take advantage of the growing market for autonomous vehicles. It recently signed a deal to acquire digital innovator Luxoft (LXFT - Free Report) . The amalgamation of Luxoft’s digital engineering capabilities and DXC’s technological expertise is expected to strengthen the latter’s presence in the automotive industry.
Luxoft already has partners like Daimler whose automotive platforms and IP include autonomous driving platforms, human machine interface, tool chain, digital cockpit, user experience, and telematics and IoT for connected vehicles.
Per MarketsandMarkets, the advanced driver-assistance systems (ADAS) market is projected to reach $91.83 billion by 2025, reflecting a CAGR of 20.96% between 2018 and 2025.
DXC Technology’s sound technical knowhow in autonomous vehicle systems thus positions it to benefit immensely.
The latest partnership with BMW pushes DXC Technology further into the market for self-drive cars and is expected to boost its Digital Solutions business.
Notably, in the third quarter of fiscal 2019, DXC Technology’s Digital revenues jumped 16.9% year over year in constant currency, driven by growth in cloud infrastructure and digital workplace offerings. Digital pipeline was up more than 90% year over year, backed by strong demand for digital solutions.
Zacks Rank & Other Key Picks
DXC Technology currently carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks in the same sector are Verint Systems Inc. (VRNT - Free Report) and Cadence Design Systems, Inc. (CDNS - Free Report) , both 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 for Verint and Cadence is projected to be 11% and 12%, respectively.
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