Chip giant Intel (NASDAQ:INTC) is focusing on enhancing its competitive positioning in the auto market with its artificial intelligence (AI) strategy. As part of this, the company announced the acquisition of Silicon Mobility SAS, a fabless company specializing in automotive semiconductors and software, focusing on providing System-on-Chips (SoCs) for Electric Vehicle (EV) energy management.
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Currently, Silicon Mobility is controlled by Venture capital firms Cipio Partners and Capital-E. The financial terms of the deal have been kept under wraps. Moreover, the completion of the acquisition is contingent upon obtaining the necessary regulatory approvals.
Intel to Bring AI Solutions Across Vehicle Platforms
Intel said it will bring innovative AI solutions across the vehicle platform with its “whole vehicle” roadmap. Intel introduced new Software-Defined Vehicle (SDV) SoCs enriched with Intel AI capabilities as a key element of this strategic initiative.
Intel’s advanced SDV SoCs aim to deliver enhanced Generative AI living room experiences, such as voice assistants and camera-based driver/passenger monitoring, in the next generation of vehicles.
Intel disclosed that its SoCs are currently integrated into over 50 million vehicles, powering various applications such as infotainment systems, displays, and digital instrument clusters. Moreover, the company said Geely’s Zeekr brand will be the first Original Equipment Manufacturer (OEM) set to leverage Intel’s latest family of SDV SoCs.
Is Intel a Buy, Hold, or Sell?
Intel stock gained over 67% over the past year. The rally in INTC stock came on the back of its improved financial performance throughout 2023, AI-led opportunities, and an expected rebound in the PC market.
Intel will likely benefit from its new Server product launches and its Foundry business. However, increased competition could continue to pose challenges. Also, the recent rally suggests that the positives are already reflected in its current share price. This is reflected in analysts’ consensus rating and average price target.
Intel stock has a Hold consensus rating based on eight Buy, 20 hold, and three Sell recommendations. Further, analysts’ average price target of $44.33 implies 7.4% downside potential from the current level.
