Intel announced that its Mobileye unit will deploy driver-assistance technology in the new electric vehicle (EV) model of the Geely Auto Group, China’s largest privately held auto manufacturer.
Intel (INTC) said that the new Zero Concept EV, which is due for release in the fall of 2021, will feature a copilot solution powered by Mobileye’s SuperVision surround-view advanced driver-assistance system (ADAS). It will also include a system-on-chip (SoC) by Intel.
“Our collaboration with Geely is a game changer for the global automotive industry as it brings our industry-leading surround-vision technology to market in one of the most advanced driver-assistance systems,” said Intel vice president Amnon Shashua. “We are thrilled to help Geely offer drivers an exciting and advanced package of high-level driver aids and safety features, including point-to-point highway pilot and traffic-jam assist, all powered by Mobileye’s SuperVision surround-view driver-assistance system.”
The collaboration between Intel’s Mobileye and Geely comes amid a growing demand for electric vehicles in China and beyond, as well as increased interest in safer, cleaner transportation solutions, the companies said.
In addition, Mobileye and Geely announced a high-volume ADAS agreement to equip a variety of Geely car models with Mobileye vision-sensing technology. The long-term agreement will see multiple Geely Auto brands and vehicles outfitted with Mobileye-powered ADAS features such as automatic emergency braking and lane-keeping assist.
Shares in California-based Intel, which is one of the few remaining in the world that both designs and manufactures its own chips, have dropped 18% this year. Meanwhile, the $57.32 average analyst price target implies about 17% upside potential in the next 12 months.
Earlier this month, J.P. Morgan analyst Harlan Sur reiterated a Buy rating on the stock with a $75 price target, saying that the engagement with TSMC is a sign of the chipmaker’s commitment to maintaining its new product cadence.
“The bottom line is that Intel is committed to keeping its product cadence on track with no more manufacturing-related product delays and the company will use internal and/or external manufacturing in order to assure product timing,” Sur wrote in a note to investors. “While we believe Intel continues to invest in advanced technologies, we also believe Intel is laying the groundwork to move a portion of advanced products to external foundries, or, fully move advanced products if needed.”
Overall, the rest of the Street is sidelined on the stock. The Hold analyst consensus breaks down into 14 Holds and 9 Sells versus 9 Buys. (See Intel stock analysis on TipRanks).
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